Thousands of Yorkshire businesses to benefit from rates relief

THE biggest package of business rate support in more than 20 years has been announced.

In Yorkshire and the Humber, 20,000 shops and pubs could get a third off their tax bill as the £1bn support for high streets and firms kicks in.

In some cases, this could give a typical small shop, pub or restaurant with a rateable value of £10,000 savings of 30% extra or more when compared to last year’s business rate bill.
 
In addition to the new business rate discounts, specially targeted to support small shops, all businesses can now choose to spread their bill payments over 12 monthly installments rather than ten, after rules were changed to give businesses greater control over their cash flow.
 
Mr Pickles said that today’s new measures would make a huge difference for struggling small shop owners and help businesses and high streets across the country build a stronger economy.
 
Figures published this week estimate that 2,400 shops in Bradford are eligible for the £1,000 retail discount, 3,000 in Leeds, 1,170 in Hull, 1,260 in York and 1,000 in Sheffield, among others. 
 
Eric Pickles, secretary of State for Communities and Local Government, said: “A key part of the Government’s long-term economic plan is to back business with lower taxes. Small shops are the lifeblood of local economies, and today’s changes will mean a massive boost to our town centres – helping to create more jobs and securing a better future for our children.
 
“A whole string of changes to business rates kick in today bringing new support to local shops, pubs and firms. In some cases shopkeepers could see their bills cut by a third extra or even more, which is worth thousands of pounds in tax breaks.
 
“Together with our sensible changes to planning rules and action to tackle unfair parking practices, we are helping local communities secure the future of their high streets.”

Peter Holmes, chair of the Institute of Directors in Yorkshire and the Humber, which represents 1,600 members in the region, said: “The extension of Business Rate Relief is welcome, offering many small businesses, new enterprises, start-ups and therefore employers support as they grow.

“The creative use of support should encourage entrepreneurs to take their first tentative steps as should the incentives to help those moving into unoccupied retail units that have been vacant for a year or more.  By allowing the risk takes in society to start or grow their business these measures also boost the chances of employment growth and we hope the extension of training and apprenticeships in the workforce.

“Increasing the extension of the small business rate relief until March next year is also to be welcomed.”
 
The full list of business rate support measures, unveiled by the Chancellor in the Autumn Statement, that take effect as of yesterday, are:
 
• a new reoccupation discount of 50% for 18 months for new occupants of retail premises that have previously been empty for a year or more
• allowing businesses to pay their bills over 12 months (rather than 10), which will help every firm with their cash flow
• a 2% cap on business rate inflation increase.
 
• the new £1,000 business rates discount for local shops, cafes, restaurants and pubs (up to a Rateable Value of £50,000) estimated as more than £272m of tax relief this year
• the doubling of the extension of the small business rate relief until March 31 2015, which will mean 360,000 business properties pay no bill at all.
 
Helen Dickinson, director general of the British Retail Consortium, which represents 80% of the retail sector, from small to large retailers, said: “The Government has recognised that the high street has been under enormous pressure in recent years, with more than one in ten shops across the country currently standing empty.
 
“The measures employed will help boost confidence in the sector, support retailers to keep prices low and safeguard 7,500 retail jobs in the coming year, as well as support local communities by keeping more shops open.”
 
The new reform on business rates payment options means a business with a rateable value of £20,000, making payments over 12 months instead of 10, would have lower monthly payments by more than £160.
 
In addition, a new Employment Allowance takes effect which will mean 450,000 small businesses no longer have to pay employers national insurance contributions. Pubs are also benefiting from the further cuts in beer duty announced in the Budget.
 
The Government has also introduced changes to planning rules to get empty and redundant buildings back into productive use, and brought forward proposals to scrap unfair parking enforcement practices.