Inadequate Government Scheme means even Business Rates Winners are still losing out
Reports in The Daily Telegraph suggest that the Government has incurred the wrath of the so-called “winners” of the 2017 revaluation as their new bills reveal they are being denied reductions to compensate companies elsewhere in the country.
Last month the Treasury’s chief secretary, David Gauke, attempted to defend the burdensome business rates system by arguing that three quarters of UK companies will see a fall in business rates. Mr Gauke also argued the Government had introduced a £3.6bn fund to smooth the burden for companies facing a steep jump in rates.
However, new rates bills have revealed that the majority of businesses will not enjoy the full value of their rates decreases.
The Telegraph reports that the £3.6bn so called “transitional relief fund” will come directly from companies who will be denied the business rate reductions they are entitled to.
Hampton Lovett are concerned that not one penny of Government money will be part of the £3.6bn fund. This would mean that businesses in less prosperous areas will have their rate deductions denied in order for businesses in more prosperous areas to be afforded a cap on their increases.
Businesses that thought they would be one of the winners will still be a loser because they will not be getting their full entitled business rate reduction.