Freeze business rates to help retailers, Colliers urges chancellor

BUSINESS rate advisors at Birmingham-based property consultancy Colliers International have called on Chancellor George Osborne to freeze rates in the forthcoming Autumn Chancellor.

The chancellor is facing mounting pressure to help ease the burden on rate payers.

Retail commentators claim business rates are fast overtaking rents in many areas as their biggest cost after labour.

Colliers rating expert Ben Batchelor-Wylam argues the Chancellor could deliver some much needed festive cheer by freezing business rates as part of his forthcoming ‘mini-Budget’.

He said: “Business rates are a ‘make or break’ issue. They are the main reason why potential occupiers don’t take new space. Worse still, the incremental creeping cost of rates is pushing many businesses over the edge. Enough is enough.”

Business rates are based on a property’s rateable value, the cost of which is due to increase 3.2% next April, a leap of almost 23% in five years. 

“This astonishing reality comes in the midst of the worst recession since the last war,” said Batchelor-Wylam.

“The retail sector is certainly not out of the woods and recovery remains very patchy. 

“Freezing rates will give many shops the breathing space they need to see out the recession.  Realistically, fundamental changes won’t happen overnight but change is needed. 

“Whilst calls for a change that maintains the integrity and fairness achieved by having regular revaluations and accurate rateable values haven’t gone away a freeze in rates is one step in the right direction.”