Budget a ‘missed opportunity’ on business rates

THE property sector said Chancellor George Osborne had missed an opportunity to use business rates to help businesses in the UK.

The Chancellor chose not to switch annual rate increases from the Retail Prices Index to the Consumer Prices Index, which it is believed could cut bills by 1-2%.

And there was no change of heart on delaying a rates revaluation until 2017.

Campaigners wanted this brought forward so bills reflect current values, rather than those of April 2008 which currently inform the rating list.

Mark Rawstron, senior regional director at GVA said: “This budget also includes no major overhaul to empty rates which the government continues to employ as a blunt instrument to raise £1bn additional tax revenue, significantly adding to the cost of holding all time high levels of vacant property.”

Gareth Wilson, valuation associate director at DTZ said: “Today’s budget has done little to improve the prospects of the regional retailing sector. The Chancellor appears happy to sacrifice the declining High Street by not reinstating empty property rates relief or to limit the planned 2.6% increase in rates bills which will add £175m to retailers’ rates costs in 2013.

“We are advised that the government’s proposals to put off a revision of the rating list until 2017 are to provide certainty to companies, and to, ‘ease the bumps in business rates for a smoother recovery’.”

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