Potentially crippling business rates have now overtaken the cost of renting for shops and companies; they are now urging George Osborne to address this situation next month in the Autumn Statement. Companies want business rates to be frozen to allow time to review the current tax system so appropriate changes can be made.
According to reports, rates have increased by 23% in the last five years with a further 3.2% rise planned for next April. This is not reflective of the rents that many retailers pay since rates are not based on current rental levels post credit crunch. Retailers believe the tax system is ‘outdated’ and needs to be modified in order to improve the overall economy.
There are also talks of rate cuts in Scotland with an announcement expected to be released over the next few days.
We can help businesses who are falling behind with their business rates, have poor cashflow or are simply in need of insolvency advice. If you’re looking to cut costs in your company, read our guide to cost cutting.
The local council’s business rates are in fact an unsecured debt and as such any arrears can be partly written off in a CVA. Call us on 0800 9700539 and speak to one of our CVA experts.