NICK CHALLENGES GOVERNMENT OVER BUSINESS RATE DEFERMENT
April 28, 2009 4:08 PM
Nick Harvey MP for North Devon notes, 'Changes in the business rate regulations due to take affect at the end of July do little to soften the blow for many businesses struggling in the face of the economic downturn.'
Businesses are now facing large increases in their rates bills. Following the 2005 rate revaluation many businesses benefited from four years of transitional relief, but this has now to come to an end. For some this means an increase of up to 30 per cent.
When challenged over the impact of these hikes by Nick Harvey, Local Government Minister John Healey responded,
'The Government listened to the concerns of businesses and other stakeholders about the impact that this level of increase will have in the current economic climate. As a result, the Government announced on 31 March that it will enable business rate payers to defer 60 per cent of this increase in their 2009/10 rate bills.'
'This is all well and good,' says Nick, 'but this new deferment scheme is only for two years, coupled to which although the new regulations are due to take affect at the end of July the local authority is still not clear how they will work.
'To compound matters the Government does not intend for local authorities to write to rate payers until this happens, only then can the deferment be requested and only then will local authorities issue revised rates.
'Effectively businesses formerly on the transition scheme will still have to pay almost half of the increase and if you are struggling this could be a deathblow, especially as they will face clearing the remaining debt in two years time.'
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