View more on these topics

Govt to cap business rates at 2%

Increases in business rates will be capped at 2 per cent from next April, Chancellor George Osborne has announced.

Business rates would have otherwise risen by 3.2 per cent next year, in line with RPI inflation levels in September. 

Osborne also announced a £1,000 discount on business rate bills for all small companies in premises worth less than £50,000, for the next two years.

In addition, the Chancellor will introduce a new reoccupation relief that will halve business rates for new businesses moving into previously vacant premises, which he said would help to reopen vacant shops on British high streets.

The Government has also extended the doubling of the small business rate relief for another year, until April 2015.

This means some 360,000 of the smallest businesses will continue to receive 100 per cent relief from business rates, with a further 180,000 benefiting from tapering relief.

Osborne said: “Business rates impose a heavy burden on businesses of all sizes. Today, we will help ease that burden.”

It follows lobbying by industry groups for a review of business rates, led by the British Chamber of Commerce.

BCC director general John Longworth says while the measures are positive, they are not strong enough to boost companies’ cash flow and investment.

He says: “The Chancellor should have been bolder, freezing business rates entirely until this pernicious tax can be properly reformed.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com