Home Business News Businesses in England face a ‘dangerous cost of doing business crisis’ with a £3.1bn business rates rise

Businesses in England face a ‘dangerous cost of doing business crisis’ with a £3.1bn business rates rise

by LLB Finance Reporter
24th Mar 22 10:37 am

Retail, leisure and hospitality businesses in England facing a “dangerous cost of doing business crisis” face a £3.1 billion business rates rise on 1 April as the Government continued its path to taper off its financial support for the high street at today’s Spring Statement according to the real estate adviser Altus Group

Analysis by Altus Group, following today’s Spring Statement, shows Councils in England estimate business rates income from 1April for 2022/23 will be £22.57 billion after all reliefs, accounting adjustments and sums retained outside the rates retention scheme are taken into consideration.

Altus Group says this represents a 17% increase in business rates income on the £19.29 billion expected to have been collected, across all sectors, in England during 2021/22 financial year which ends on 31st March.

During the pandemic, occupied retail leisure and hospitality premises received a 100% business rates discount during 2020/21 and for the first 3 months of 2021/22, with then a 66% relief for the remaining 9 months up to a total value of £2 million per business.

However, from 1 April 2022, this will be replaced by a new relief for eligible retail, hospitality and leisure properties with smaller 50% relief on rates bills but capped at £110,000 for larger businesses.

Altus Group say the lower discount and much smaller cap on help will see the cost of the support half from £5.76 billion during 2021/22 to £2.66 billion for 2022/23 costing high street businesses an extra £3.1 billion in tax.

Robert Hayton, UK President at Altus Group, said high street firms were facing a “dangerous cost of doing business crisis which could derail the recovery from the pandemic” citing “lower rates relief, increased employment costs, surging gas and electricity bills as well as other increased operational costs.”

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