Andrew Turner has given a cautious welcome to the Chancellor of the Exchequer’s announcement last week that businesses will be able to defer 60% of the increase in their business rates from their current bills – but only until next year. Mr Turner recently met Dean Hodges, who owns and runs Star Signings in Newport, whose business rates have increased by nearly 90% due to the withdrawal of transitional business relief.
Mr Turner said:
“The Government sets business rates in line with the Retail Prices Index which at the time of the last review was 5% but has now fallen to 0%. The Chancellor has deemed that this should be passed onto business owners by way of deferred payments.
“Whilst I welcome the Government’s recognition that small businesses are struggling to cope with the effects of the increase, I am concerned that this is not a long term solution and only delays the problem. The Government is deeply in debt and needs to raise money – but forcing small companies out of business is not the answer.
“I understand that the Government intends to have the necessary regulations in place by the end of July. Island businesses should be notified by the Council once the arrangements are in place but in the meantime should continue to pay their business rates as normal.”
The Department for Communities and Local Government has released a fact sheet which can be accessed at www.communities.gov.uk/documents/localgovernment/pdf/1190988.pdf.
END Contact : Andrew Turner’s office 01983 530808
