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2010-09-27 : Government Urged to Re-think Business Rates Calculation

The British Retail Consortium (BRC) has called for the government to re think the way business rates are calculated.

The rateable value of a property is recalculated every five years. The start of the new 2010 Rating List in April meant most companies saw a substantial rise in their business rates, as the property values were set back in April 2008 and do not reflect the current market climate. A Transitional Relief scheme was introduced to help businesses phase in the extra cost.

In addition, business rates are re calculated annually, using Septembers' Retail Price Index, with the new figure coming into effect the following April. The BRC is urging the government to use an alternative to the September RPI, as this years figure is expected to be above 4%.

Businesses already paying high costs in rates could see their bills rise again following the publication of the RPI figure, due on October 12. Some bills are predicted to rise by 22%.

The BRC would like to see the government use an alternative calculation to the September RPI, such as switching to using CPI (Consumer Price Index) instead, which is how pensions are now re calculated. They also say that businesses need a permanent move to a more stable way of calculating business rates.

Your company could benefit from a free Ruddle Merz Business Rates Review. Please contact us on 0800 883 0353 or email us at enquiries@ruddlemerz.co.uk.

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