At the next budget due next March, the UK government proposes to hike business rates across the country. They were last raised in 2008. London and the south east of England will be the worst hit. Already, there is a big uproar from London’s business community aimed at persuading the Chancellor, Phillip Hammond from inflicting these astronomical rises of up to 500% in some parts of the country.
The huge rate hike will be felt mostly by business that operate from rateable premises such as restaurants, retailers and offices in high streets up and down the country. Not everywhere will see a hike in rates. Indeed, as officials have said, some areas will a fall in rates. London firms face paying an extra £7.5 billion in business rates as a result of next April’s rating revaluation, according to the latest research from property consultancy Gerald Eve. Many African food businesses are based in the capital and only one borough, Redbridge is going to see a fall in rates after April.
The greatest impact will be seen on commercial properties in Hackney (about 30% increase), Hammersmith & Fulham (30%) and Islington (28%). Lewisham escapes relatively lightly with a rise of ‘only’ 7%.
Minority businesses bear a bigger burden in the financing as it is and will likely experience greater risk to their survival in the light of these planned rises.
Are you concerned about the planned rate rises? Send us a comment.