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A B C D E F G H I J K L M N O P R S T V W Y

Spring Budget 2017: Post-Budget comment on business rates

Spring Budget 2017: Post-Budget comment on business rates

Wednesday 8th March 2017

Richard Roberts, partner and head of the retail sector at Brabners, said: “In the lead-up to the budget, organisations across the country were hoping for more details on how the government would cushion the blow of the business rates revaluation. To an extent, that’s what we got. The chancellor’s three-point plan, aimed at helping certain smaller businesses and those hardest hit, will be some comfort to SMEs in the South East that were fearing tax increases of up to 70%.

“The chancellor also acknowledged that the current system disproportionately favours digital businesses. But, disappointingly, we’re still waiting for clarification on how this government will make taxation fairer for bricks-and-mortar retailers. The link between rate and property value will continue to affect high street retailers more acutely than ecommerce companies, which can house their operations outside of property hotspots. 

“Significant concerns will also remain for SMEs in high street locations who rely on bigger brands to drive footfall to the area.  Those larger operators – who are unlikely to benefit from the measures announced – may still choose to exit sites where rates rises make that store unprofitable. This will leave remaining retailers with one less flagship business to attract customers to their parades.

“Ultimately, the revaluation will still be a headache for a lot of businesses that fall outside of the rate relief threshold or those which aren’t accounted for in the government’s new three-point plan. For those companies, regions like the North West, where rates are due to fall or see marginal increase, will become an increasingly attractive and more viable option.”


ENDS

Issued on behalf of Brabners LLP by Citypress.

Media information:
Sophie Millward / Bryn Madden
Citypress
T. 0161 235 0300 / E. sophie.millward@citypress.co.uk / E. bryn.madden@citypress.co.uk