Title

Ministers have proposed capping business rate increases for the 40% of firms facing higher bills following a property revaluation in 2010. Local government minister, Rosie Winterton, proposed the cap as part of a £2bn transitional business rate relief scheme, designed to ease the impact of locally-collected taxes during the recession. Around 60% of firms could see council-levied bills decrease next year, when commercial properties are subject to a five-year review. London and the south-west of England face the biggest rate increases since, despite the downturn, commercial property prices have increased significantly over the past five years. Large supermarkets face the biggest increase in rates, while high street retailers will be largely unaffected. Ms Winterton launched the CLG's consultation on 8 July. She said: ‘Overall the effect of revaluation for the majority of businesses could be a reduction in their rate bills. ‘But, while most will see falls, for the minority with increases, we are putting in support to help keep potential rises down. ‘This is on top of wider support available to help ease business pressures, including discounted rate bills for smaller business, deferring tax payments, and free business health checks.' Ms Winterton's proposed restricting rate rises for small businesses to 5%, while those for medium and large firms would be limited to 12.5%. Ministers also want to extend the cap scheme from four to five years. Half-a-million firms could benefit.

Title

BUSINESS

'Majority of businesses' to get reduction in rates bills

SUBSCRIBE TO CONTINUE READING