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Business Rates Set to Rise by 2011
Listed under: News
Published: Tuesday, January 13, 2009
Retailers could face even more challenging times over the next few years as the weakening property market causes business rates to reach an all-time high.
Current proposals by the Government could push the retail sector's present costs from £5.45 billion in 2007/2008 to a whopping £7 billion in 2010/2011. Retailers already pay 25% of business rates despite only representing eight percent of the gross domestic product and in the current economic climate an increase in costs could see many businesses struggle to stay afloat. With up to 40,000 retail jobs expected to disappear over the next few months, the British Retail Consortium (BRC) is calling for an immediate freeze on all new business rates.
Carolyn Holland, who owns K&K Craft Creations in East Yorkshire, agrees the new costs could be crippling for many craft shops. “This is the first I've heard of it,” she says. “It will obviously have a big effect on all small businesses as it will result in more outgoings. I thought the government were meant to be helping independent retailers. There seems to be a lot of talk at the moment and simply not enough action.”
Stephen Robertson, the BRC's director general, adds, "Many retailers are struggling with the triple whammy of falling sales, crushed margins and rising costs. The government must revise its plans to impose a range of extra burdens, which can only increase the pressure on retailers and destroy more of the UK's three million retail jobs. Retailers are crucial to livelihoods, customers and communities. We don't expect handouts but we don't want further handicaps."
Carolyn Holland, who owns K&K Craft Creations in East Yorkshire, agrees the new costs could be crippling for many craft shops. “This is the first I've heard of it,” she says. “It will obviously have a big effect on all small businesses as it will result in more outgoings. I thought the government were meant to be helping independent retailers. There seems to be a lot of talk at the moment and simply not enough action.”
Stephen Robertson, the BRC's director general, adds, "Many retailers are struggling with the triple whammy of falling sales, crushed margins and rising costs. The government must revise its plans to impose a range of extra burdens, which can only increase the pressure on retailers and destroy more of the UK's three million retail jobs. Retailers are crucial to livelihoods, customers and communities. We don't expect handouts but we don't want further handicaps."
