Home Business News Biggest tax rise in 33 years for 220,000 firms comes into force today

Biggest tax rise in 33 years for 220,000 firms comes into force today

1st Apr 24 8:19 am

219,410 shops, pubs, restaurants, offices, factories as well as public sector buildings such as schools and hospitals will on Monday see their business rates bills in England rise by £1.66 Billion for the 2024/25 financial year with tax experts calling the Government’s decision as anti-growth.

Whilst the Government have frozen the small business multiplier at 49.9p, they chose to uprate the standard multiplier, the tax rate for all non-domestic properties in England where the rateable value is £51,000 or over, by last September’s headline rate of inflation.

Alex Probyn, President of Property Tax at Altus Group, Britain’s largest ratings advisory, said, “the 6.7% increase, an effective tax rate of 54.6% from today, has left firms with the biggest year-on-year increase to the standard multiplier since 1991 despite the UK’s headline rate of inflation set to fall below the target rate of 2% within the coming months.”

Probyn added, “this is no way to encourage investment and foster economic growth.”

Analysis of official Government data by Altus Group shows 97,650 firms across London and the South East will have to stump up almost half of the increase, an extra £823.95 Million in tax.

Whilst 43,130 firms in the retail sector, which has already seen 16,170 job losses so far this year according to the Centre for Retail Research, will see a £306.22 Million increase.

Britain’s economy shrank by 0.3% in the 3 months to December, entering a recession in the second half of 2023.

Business rates are devolved to Scotland, Wales and Northern Ireland.

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