Business rates
Peter Chapman, head of rating and compensation, Cluttons, commented on the government’s recent announcement on business rates for 2012/2013:
“The government has now confirmed that the uniform business rate (UBR) is to be increased in-line with the RPI figure of 5.6% for 2012/2013, but has taken into account the concerns of businesses across the UK by allowing companies to defer 3.2 per cent of their annual bill. Although this difference, which represents 60 per cent of the RPI increase, must be repaid eventually, this deferment will provide much-needed relief in the short-term.
“That said, more could and should be done to limit the risk to the country’s struggling businesses. We believe the UBR should no longer be linked to RPI, but changed to the lower CPI figure. The Chancellor has implemented this change for pensions and benefits and it is time he recognises the need to minimise increases in business rates which have now become the major overhead for most businesses.”