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2011-11-30 : Osborne announces business rates deferral scheme in Autumn Statement

In his Autumn Statement, chancellor George Osborne announced that the current non-domestic rates holiday for small business will be extended from October 2012 to April 2013.

The holiday offers 100% relief on business rates for premises with a Rateable Value of up to £6,000, with progressively smaller amounts of relief on Rateable Values up to £12,000.

The chancellor also announced a 2 year business rate deferral scheme, similar to the scheme trialled in 2009. This means that businesses will be able to defer 60% of the rate increase planned for April 2012, to the following two years.

While the business rates holiday and deferral scheme could help some struggling businesses, April 2012 will see many more businesses suffer as a result of the planned rates rise of 5.6% - the biggest rise since 1991.

The deferral scheme in particular is being seen as a double-edged sword. On one hand, businesses are grateful for the impact this will have on their cash flow problems, however experts warn that the previous deferral scheme was less than helpful to tens of thousands of businesses who were incorrectly summonsed for payments which had been miscalculated by their local authorities.

For more information on the deferral scheme and how this may affect your rates liability, contact our team of expert Surveyors on 0800 883 0353 or email enquiries@ruddlemerz.co.uk.