The boss of Ei Group has called on the next government to review the “concerning” business rates system, as he revealed a fall in profits at the pubs chain which is grappling with a £2.2 billion debt pile.
Members of London’s luxury retail sector on Wednesday welcomed news that MPs will grill communities minister Sajid Javid over crippling rises to business rates.
The companies spoke out after the Communities and Local Government Committee yesterday confirmed that on April 19, Javid will be questioned over new rates changes and the pressure being putting on retailers.
London’s fastest-growing shopping areas will be the most heavily punished by the business rates revaluation, data showed today.
From April, business rates — an annual tax firms have to pay on their property — will rocket for thousands of businesses in London because of a government revaluation.
The reintroduction of a tax on Scottish farms and estates with shoots and deer forests is just weeks away, but farmers are already eyeing the appeals process.
Business rates on shoots were abolished in 1995 but will be brought back on 1 April.
Pressure is mounting on the government to reduce the effect of business rate rises from April.
Farming and other rural business groups are calling on the chancellor, Philip Hammond, to take action in next month’s budget.
Business rates are more of a concern than Brexit for UK retailers at the moment, the boss of shopping centres landlord intu Properties declared on Thursday.
Chief executive David Fischel sounded the alarm as the firm revealed strong 2016 figures, which sent shares in the Lakeside owner up by more than 6%.
Swift action is needed to save thousands of rural businesses facing a massive hike in business rates from April, according to the Country Land and Business Association (CLA).
The rise follows a revaluation and changes to the appeals system, threatening the future of enterprises from farm diversifications to livestock marts.
For example, Valuations Office Agency (VOA) figures show livestock markets in England face an average increase of 86% in rateable values.
The Mayor of London has joined an alliance of the capital's biggest business groups to slam the Government's revamp of business rates, and push for a reform to the system.
This comes after a revaluation of rateable value, which will mean that some business will have to pay 150pc more when it is brought in next April.
The recent revamp of business rates is a “revenue raising” exercise by government that is “ridiculously onerous”, according to the outspoken boss of property investment company Panther Securities.
London’s businesses will be forced to hand over an extra £4 billion in tax over the next five years in an unprecedented raid on the capital’s “cash cow” economy.
Rates will increase, but by how much depends on the location of the farm and any business judged chargeable to business rates.
While farm buildings and agricultural land are exempt from business rates as long as they are being used for agriculture, diversified farm businesses are often subject to business rates.
Thousands of firms in England and Wales are set to see dramatic changes to the amount they pay in business rates, after the government publishes the new "rateable values" of their properties on Friday.
Government plans to let councils keep all of their business rates must address problems with appeals and withdrawing essential grants before they can go ahead, the Communities and Local Government committee has said.
Plans to reform the business rates system were unveiled at the 2015 Conservative Party Conference by George Osborne, who said that the move would devolve power for more than £26bn of revenue to local authorities.
Fashion powerhouses Victoria Beckham and Christian Louboutin are among retailers on Dover Street named as the nation’s biggest business rates losers.
Retailers on the Mayfair street currently pay average rates of £76,394 every year, but this could rocket more than fivefold to £393,305 in 2017.
Property agent Colliers International also forecasts that London’s other losers will include Brixton, set for a 128% increase, and Fulham Broadway — up 187%.
Companies disrupted by construction works for the Crossrail railway line have won £50 million in business rates discounts, and over 1000 more firms could still claim.
Over the past five years, £35 million has been handed back to firms who have been granted refunds or reduced rates bills, research for the Evening Standard by business rents and rates specialist CVS has revealed.
By 2017, when new business rates will come into force, this figure will have grown by another £15 million.
Owners of farm diversification businesses who think they are paying incorrect business rates are being warned they could lose thousands of pounds in rebates if they don’t appeal before 1 April 2015.
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