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Chancellor George Osborne caps business rate rises

According to recent reports the chancellor George Osborne intends to impose a cap of 2% on business rate rises in England and Wales.

The government will lose a whopping £300m in revenue, but also lessen the burden for businesses across the country.

Based on the usual September retail prices index measure of inflation, business rates could have risen as much as 3.2%. After intense lobbying by many organisations, the chancellor had to rethink the set-up and thus came to the conclusion of capping rises.

Business rates have been a major cause for concern for some time and have burdened many companies with increasing rates bills.

Helen Dickinson, British Retail Consortium director general commented: “The BRC has been campaigning for a cap on business rates of 2% followed by reform of the system. If the reports this morning are correct and the Autumn Statement does include this cap it will be welcomed enthusiastically by retailers across the country. It could save 7,500 jobs next year, boost local communities and allow more shops to stay open on our high streets.

“In the longer term, reform is still essential. The business rates system is not fit for purpose and has become the highest business property tax in Europe. The BRC is leading a rigorous examination of options for improving it, supported by a broad group of industry stakeholders.”

 

Sources

http://www.bbc.co.uk/news/business-25211196

http://www.retail-week.com/topics/policy/chancellor-george-osborne-to-cap-business-rate-rises-at-2/5055532.article?blocktitle=Latest-news-&-analysis&contentID=13144

http://www.ft.com/cms/s/0/25a27820-5aa6-11e3-942a-00144feabdc0.html#axzz2mVH7m5Je

 

 

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