The Government wants to end ‘cliff edges’ in business rates that send bills soaring for small firms.
The Treasury is looking at changes to small business rates relief as it says it currently discourages expansion – but has not addressed a controversial proposal to hike taxes for many large grocers and department stores.
The relief provides a 100 per cent discount for a company in a property with a rateable value of £12,000 or less and tapered relief for sites between £12,000 and £15,000.
The Government will today say it is exploring how to eradicate ‘cliff edges’, where bills rocket by thousands of pounds by removing the single property requirement, which means a business loses all relief when it opens a second site.
Labour is considering a system that is more like income tax – where rises are gradual. There will be an update in November.
The Chancellor has faced pressure from big retailers who fear 4,000 stores will have to pay higher rates, saying ‘anchor’ stores that attract shoppers to town centres will be hit hard.
Reforms: Small business relief provides a 100% discount for a company in a property with a rateable value of £12,000 or less and tapered relief for sites between £12,000 and £15,000
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