Tuesday, February 5, 2008

Supplementary Business Rates

Supplementary Business Rates

The Government issued a White Paper recommending that local authorities be given a new power to increase the business rate by up to 2p in the pound to finance investment in local infrastructure and other economic development activities. The impact of a levy of this size nationally could increase the sector’s liability by as much as £130m per annum. The retail sector already contributes £4.5bn per annum to Government in business rates or 25% of all rates receipts, which is more than any other sector and already a considerable financial burden.

The BRC opposes supplementary business rates since property occupation is no indication of the benefits to be derived from such investments. We are not satisfied that the safeguards for businesses set out in the White Paper will prevent extensive abuse by local authorities.

We will continue to work with other business representative groups to campaign against the introduction of this inequitable tax

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