Business rates specialists CVS react to the Autumn Statement and confirmed Transitional Rate Relief
Business rent and rates specialists CVS has declared the Autumn Statement as a ‘missed opportunity’ for business rates. Businesses across the UK continue to grapple with financial uncertainty, a post-Brexit economy, the fall in Sterling, increases to the national living wage and, as of next year, the apprenticeship levy.
The Chancellor has simply not heeded the warning from businesses in these challenging times and the implementation of the recent Revaluation is potentially highly damaging. Over the last couple of months, businesses across the UK have been trying to determine if they are a ‘winner’ or a ‘loser’ of the recent Revaluation. It is CVS’ belief that unfortunately, they’re all set to lose out.
CVS has announced that without intervention from Government, an extra £558 million will be added to England’s overall business rates bill simply through inflation alone.
Furthermore, Theresa May, at the recent CBI conference, announced that she wants to cut Corporation Tax to the lowest level in the G20. CVS is rallying for competitive property taxes now more than ever given the current and future challenges in the economy. The focus must be on the business rates yield, as this is currently the highest of any G20 country both as a percentage of GDP and overall taxation.
The Department for Communities and Local Government (DCLG) also confirmed plans for transitional rate relief as they announced a decrease of 3% to the upwards cap- from 45% to 42%- as of next year. At the last 3 Revaluations, the upwards cap for increases was limited to 12.5% for large premises yet, next April, this will increase to 42%, meaning businesses have just over 4 months to find the extra cash.
The Chancellor spoke in detail during the Autumn Statement about ‘rebalancing the economy’ and encouraging other regional cities, outside of London and the South East, to prosper. Why then, CVS asks, did he avoid increasing the downwards cap as well, so that businesses, especially in the North- who have seen their tax assessment fall by over 25.2%- could actually receive some benefit of their reduced tax assessment?