The British Retail Consortium (BRC) has welcomed the decision by the Chancellor not to increase business rates by 5% today.
Alistair Darling revealed yesterday that the increase would be limited to 2% - and that the further 3% would be deferred over the next two years.
But, the BRC said that retailers still face a £100m increase to their bills from today and that there had been no change to the overall £1.6bn increase in business rates bills retailers face by 2010/11.
The BRC’s director general Stephen Robertson said “It’s come at the last minute but the government’s recognition that piling on a massive extra £250m business rates burden in a recession would seriously harm hard-pressed retailers is welcome.
“With RPI inflation at zero, and expected to turn negative later this year, a 5% increase was unjustifiable.
“Allowing businesses to postpone the extra costs from ending the phasing in of the 2005 revaluation scheme will be particularly helpful for smaller retailers. Many were struggling to prepare for a painful hit from increases over and above the basic 5% planned.
“But the Chancellor has only taken a first step. The timing has changed but the eventual costs haven’t. He still plans business rates increases totalling £1.6 billion by 2010/11, that’s 30% more.
“The government must reintroduce empty property rates relief and remove the serious threats that remain from the impact of 2010 revaluation and Business Rates Supplements.”
