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Sunday 19 February 2017

Business rate rises - and the implications for councils

The row over business rates is really heating up:
Futures Forum: Revolt against business rates: UK entrepreneurs pay more than France and Germany combined

With today's Sunday Times making the situation absolutely clear:

BUSINESS RATES ROW INTENSIFIES


Tim Shipman and Jon Ungoed-Thomas 19 February 2017

Ministers try to defuse business rates row


Philip Hammond, the chancellor, is examining ways of making the scheme fairer after widespread outrage at the first rates overhaul in seven years, which will come into effect in April.

Small businesses face huge increases while some of the biggest companies in Britain — including Amazon and large supermarkets — will benefit from rate cuts on some of their properties.

"The chancellor will be looking at ways of ensuring things can be done a little fairer."


Ministers try to defuse business rates row | News | The Times & The Sunday Times

For more, see:
Business rates row intensifies | East Devon Watch

The East Devon Watch blog asks what local authorities are going to do:
Do our councils have plans for the effect of increased business rates on small businesses? | East Devon Watch
Revealed: Tory ministers planned business rates help for high street, but plans were abandoned after the election - Telegraph

The problem is that Councils will be gaining from high business rates - but on the other hand, they'll be getting less than currently:

By 2020 some councils will be able to keep 100% of the business rates raised in the local area, up from 50% at present.

“It does raise a question about the long-term finances for local authorities. I think there is a growing recognition that local authorities are under heavy pressure – the social care system is clearly in crisis. “There are a growing number of MPs who are concerned that if you devolve business rates and other responsibilities, will social care be properly funded after 2020 and will they be able to fund other services?”
Small shops recoil in the face of business rates that will more than double | Business | The Guardian
Business rate increases 'could cripple hospitality industry' - BBC News
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