Home / Knowledge / News / Cap business tax rates at 5% - BRC
Cap business tax rates at 5% - BRC
Sep '09
The Government's plans for cushioning the effects of next April's Business Rates increase do not go far enough, said the British Retail Consortium (BRC). The increase will leave retailers forking out £5.83 billion of England's £23.44 billion total business rates revenue.

Responding to the Department for Communities and Local Government's consultation on Transitional Arrangements for England (which closes today Wednesday) the BRC said the Government was right on the scheme's duration and right on how to pay for it but wrong to expect it to balance its books within each year.

The rateable value of all England's business premises has been reassessed based on property values on 1 April 2008. The Business Rates bills companies face from April 2010 will be the first based on this revaluation.

Some will see their bills rise as a result of revaluation, others will see them fall. Transitional Arrangements are intended to smooth-out the effects of the revaluation for those businesses worst affected. For example, without transition, supermarkets are expected to face an average 12 per cent increase in their business rates bills. There are also large regional disparities in business rates bills with retailers in the South West and London facing the biggest increases.

In its response to the consultation, the BRC says the Government is right to suggest capping the increases and meeting the cost of that by also capping the benefits for those businesses whose bills will fall. This is fairer than financing the capping by a general supplement on all beneficiaries.

It is also right to plan to run the Transitional Arrangements for the full five years until the next business rates revaluation.

But, against a background of the toughest trading conditions for years and falling shop prices, the Government should be capping business rates rises at five per cent in the first year. Instead it is still prepared to allow rises as high as 12.5 per cent in year one and up to 25 per cent in years four and five.

And insisting the scheme is revenue-neutral within each year, rather than simply across its five-year life, will limit its ability to help hard-pressed retailers at the time when they most need it.

Tom Ironside, British Retail Consortium Director of Business Environment said: "Property is one of retailers' biggest costs. Shops have to be all over the country, near where people live. That leaves retailers paying a quarter of all business rates despite making-up eight per cent of GDP. In some of the toughest trading conditions seen in years, a scheme that regards a twelve per cent hike in retailers' rates bills as OK isn't doing its job.

"At a time when shop price deflation has arrived, piling costs like these onto retailers is a direct threat to their ability to maintain and create jobs. Retailers need to be cushioned from the worst effects of revaluation on their business rates bills.

"The Government has got some key elements of the arrangements right but it needs to ensure it can deliver enough help to retailers at the time it is most needed."

British Retail Consortium (BRC)

Must ReadView All

Textiles | On 25th Oct 2016

Arvind to dilute 10% stake in brand business arm

Arvind Limited, one of India’s largest integrated textile and apparel ...

Courtesy: Commonwealth Bank of Australia

Textiles | On 25th Oct 2016

World’s first cotton shipment using Skuchain’s Brackets

The world’s first trade transaction involving shipment of cotton...

Textiles | On 25th Oct 2016

Cotton yield to increase to 568.29 kg/ha in 2016-17: CAB

At its first meeting for the cotton season 2016-17, the Cotton...

Interviews View All

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Rahuul Jashnani

‘Online economy has changed the whole dynamics of buying habits.’

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search