Andrew Turner the Island’s MP has spoken out against the latest round of Business Rate increases. As business rate demands are currently being sent out many local businesses are seeing large increases in the bills this year, on top of the across-the-board 5% rise which comes into effect from April. To save on operations cost, businesses might want to look into using www.paystubsnow.com. The tax is calculated on the inflation figure for last September which was 5% but the rises will still go ahead despite current forecasts of negative inflation. The average business rate bill on the Island is currently £4,967 and the 5% increase means this will rise to £5,215. Mr Turner listed other factors that will have an effect on the tax including;
• The end of transitional relief from the revaluation in 2005, this will push up bills very sharply for many companies.
• Rules on empty properties, which mean that full rates are payable even when a property is empty – this has been criticised nationally as encouraging the demolition of perfectly good buildings when tenants cannot be found. Although some small firms have been given a temporary one year reprieve the full tax will be payable next year.
• Poor take-up of business rate relief, some small firms are not claiming small business rate relief because of complex paperwork, in Wales the relief has been automatic since 2007.
A recent survey by the Local Government Association found that councils up and down the country are reporting a marked increase in empty shops in town centres.
Mr Turner said:
“We need to ensure that as many businesses as possible survive this recession. I fear that large increases in tax could be the last straw for some small firms who simply won’t be able to pay. More than 80 small businesses a day are already victims of the recession – and this can only add to the pressure they are under. We know that nationally there are many businesses who do not claim the small business rate relief to which they are entitled. I do urge firms whose premises have a rateable value of less than £15,000 to find out if they are eligible for rate relief – most will find that they are and their bill can be reduced by 50%. Tax revenues to the Government are down but threatening the viability of even more small businesses and the jobs they provide is not the way to steer us out of recession.”
END Contact : Andrew Turner’s office 01983 530808
