18 March 2009
Guildford Borough Council is calling on the Government to help businesses facing substantial increases in business rates following the end of the national business rate transitional relief scheme.
A total of 272 local businesses have seen their bills for 2009/10 increase by more than 5%. Some, including children's nurseries, garages, offices, shops and warehouses, have seen increases of up to as much as 1000%. This is because the Government's transitional business rate relief scheme which has helped minimise increases since 1990 comes to an end on 31 March this year.
Guildford Borough Council, which collects the business rates on behalf of the Government, has taken action and is contacting all the affected businesses in the borough with increases over 5%. The total amount of extra business rates over 5% the Council is collecting for the Government is £281,000.
Lead Councillor for Finance, Cllr Tony Rooth, explains: "Many local businesses, as a result of the Government's decision to end transitional relief, will have considerably higher business rates than before. This is the result of a change to the national formula and we will be doing all we can to help local businesses. We are inviting businesses affected to come and talk to us so that we can explain how the increase has come about and to find out if they will be able to receive any help.
"This is not just a local issue; businesses are being affected right across the country. There could not be worse economic time for businesses to suffer such huge rate rises. We are asking the Government to take action to help businesses cope with this major problem in the current economic downturn. We have also contacted the Local Government Association to do likewise," adds Cllr Rooth.
ENDS
Notes for editors:
All businesses will see an increase in their rates bill of at least 5%, which is the inflation rate being applied to 2009/10 bills. Councils are instructed by Government to use the RPI at September 2008 rather than the prevailing rate - 0.1% (Jan 2009).
Examples of bill increases include:
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a 1000% rise - from £190 to £2,200
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a 500% rise - from £200 to £1,200
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a 450% rise - from £4,400 to £24,700
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a 100% rise - from £9,000 to £18,000
The National Non-Domestic Rates (NNDR) or business rates were introduced in 1990, with transitional business rate relief phasing set by the Government every five years to coincide with revaluation. This meant increases (and reductions) in business rates were minimised, with businesses paying substantially less in some cases than the actual rates due.
Following consultation in 2004 prior to the revaluation in 2005, the Government reduced the transitional relief phasing to four years, ending on 31 March 2009. This means some businesses will be paying the full business rate with no relief.
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