New research has shown that around a third of high street businesses in England missed out on a promised discount on their business rates bills
The data from property firm Gerald Eve is released in a week where businesses hit hard by rising energy costs wait to see what support Chancellor Kwasi Kwarteng and the Government will offer in Friday's "fiscal event" mini Budget.
Gerald Eve's data showed just 272,000 out of a promised 400,000 retailers, leisure and hospitality venues were able to claim a 50% discount on the commercial property tax announced at the last budget.
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Property experts are warning that without Government action, businesses could face a huge £4.7bn total increase in business rates next year if support does not continue and rates rise as planned by the CPI inflation level for September.
The data came from Freedom of Information requests to councils in England, asking them how many businesses in their area benefitted from the rates relief.
The relief was designed to help the high street to recover and was targeted at firms in sectors heavily impacted by pandemic closures.
Gerald Eve says the main reason just two thirds of businesses could get the discount was because the former Chancellor placed a cap of £110,000 on the amount that each business can receive, rather than on each property. It says that meant hospitality or retail chains could only get the benefit for their first few properties.
Jerry Schurder, business rates policy lead at Gerald Eve, said: “The new Chancellor must avoid the mistakes of his predecessor when he announces support for businesses on Friday.
“Naturally, a lot of the attention will be on support for sky-high energy bills but there will be little point if those same firms see their business rates soar.
“In the 2019 manifesto, the Conservatives promised a fundamental review of rates and a reduction in the burden on the retail sector, but three years later, as good as nothing has been delivered.
“The new Prime Minister told businesses she wanted to intervene in reforming rates. Now she must deliver.”
Industry bodies including ƵHospitality are calling for a further business rates holiday and a VAT cut to help firms hit by soaring inflation. Gerald Eve also wants to see the 50% discount extended into next year.
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