Autumn Statement 2016: Full business rate relief for rural businesses
— FSB (@fsb_policy) November 23, 2016
Graham Marley, chief executive at the Let’s Do Business Group, said that while the increase in rural rate relief is good news for rural communities, it is not clear yet whether this will be extended to all types of businesses or just villages with only one shop such as a convenience store or a pub.
Phil Vernon, business rates leader at PwC, added to this by saying: “There are still concerns for many businesses facing rate increases next year and while the government has opted to lessen some of the impact of the April 2017 revaluation with a transitional scheme, they are still pressing ahead with a far less generous scheme in 2017 than the one adopted in 2010, when increases were capped around 12.5 per cent.
“The business rates burden will increase for some businesses by up to 42 per cent next year, which could see their payments increase by up to 75 per cent from April 2018.”
According to Vernon, there are also some “unwelcome features” of the transitional relief scheme that are still not addressed, as well as some regional variations where the scheme is not being adopted. “Many of the business rates supplements do not receive transitional protection and so larger businesses could actually be facing increases of 48 per cent,” he explained.