Business rate reduction scheme in pipeline
Fri, 10 Jul 2009
A £2 billion scheme could be launched to support the minority of compnanies set to suffer from a five-yearly revaluation of business property.
The government is seeking feedback on proposals for the scheme, which would be financed by businesses themselves and see firms that witness an increase in rates compensated from a central fund.
Up to 60 per cent of small firms will actually see business rates fall when the revaluation occurs in 2010, the government says, but those in London and the south-west of England could suffer the opposite fate.
Commenting on the government proposal, a spokesperson for Smallbusiness.co.uk said this is one area where the government can have a direct effect on alleviating some of the financial pressures companies are facing, especially as credit conditions remain tough.
She added: "A reduction in rates across for small businesses would be welcomed, although it remains to be seen if this will be the outcome.
"With the problems small and medium enterprises are already facing, they shouldn't be liable to increases. If the burden of higher rates should fall anywhere at all, it only seems fair that it should be on the larger companies who have more scope to absorb the costs."
Back in March 2009, it was announced that businesses would be able spread payment of this year's inflation up-rating to business rates over three years.
How Microsoft can help
Use Excel 2007, part of the Office 2007 suite of applications, to gain a clearer insight into your finances. Get a free 60-day trial today.
More
Small Business Finance News
View all articles
|
|
