Since the business rates revaluation at the end of September, we’ve had a huge amount of correspondence from Kent and Medway members about the issue. It is understandably causing a great deal of concern – some businesses have seen increases of 50% in their bills from 1 April.
We have long believed that business rates are an unfair tax not based on the firm’s size or ability to pay, and the recent revaluation has made this situation worse for many small firms. As a result of this, FSB has been very vocal on the topic and we’ve been speaking to all levels of government extensively about the issues you have raised, including the Chancellor Phillip Hammond. We have also been working with some of the other business groups to raise the issue in the media – you may have seen our comments in The Telegraph, The Times, the Daily Mail and the BBC.
While we still have a way to go, we were pleased that Government announced a new ‘transitional relief’ scheme which will spread increases in business rates for up to five years. It will limit any increase in business rates to 5% next year and spread any subsequent increases over 5 years. Here are further details:
It’s also worth noting that FSB also achieved a significant victory at the Autumn Statement in regards to Rural Rates. From April next year the government will be increasing the relief offered to qualifying properties to 100%. This obviously doesn’t solve the issue for everyone but it is an important win nonetheless and means that small businesses in rural areas will benefit from an additional savings of up to £2,900 per year. This is on top of our huge victory at the budget last year, which finally doubled the threshold for 100% rates relief to £12,000 RV.