News 55,000 retail stores face higher business rates

Discussion in 'Business News & Resources' started by Cody, Mar 14, 2018.

  1. Cody

    Cody

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    With the recent Spring Statement unveiled by Chancellor Philip Hammond, who said the UK will see "light at the end of the tunnel" implied that perhaps austerity will eventually come to and end, with an increase in public spending. However throughout his Spring Statement he expressed there will be more taxes to come, such as a tax on single use plastics, a tech tax on firms like Google and Facebook, and of course yet again another tax on business rates

    Just over 55,000 retail premises in England are to endure more price hikes this April, on their already expensive bills. These retail premises will see tax rises of more than three percent for the 2018/19 fiscal year.

    The Retail Gazette says: "business rates will now increase annually in line with September’s lower Consumer Price Index (CPI) of three per cent."

    They also state that that 35,600 smaller premises, over 17,000 medium, and 2468 large retail premises in England will see taxes much higher than the CPI, totalling up to a tax increase of £154.8 million, whilst over 2200 large shops face increases in business rates of over £35,000 each, totalling up to £78 million.

    This I find incredibly troubling for many businesses that are already suffering on the high street. All this year so far we've seen the likes of Toys R Us, Maplin, Claire's Accessories, New Look and hundreds of other stores struggle to the point where they're filing for bankruptcy, closing down stores and making some staff redundant in order to save money.

    Consumer spending is down, many of us are feeling the austerity pressures in our own daily lives, wages are not in line with current high living inflations, and because consumers are not spending as much on the high street all we can really expect from these new higher business rates is for more small and medium businesses to make further financial squeezes by either cutting down on their staff or closing shop full stop.

    Whilst the UK Conservative Government claim "we're in this together" I like to believe perhaps we're really not. Whilst consumers and regular ordinary people struggle to get by on low wages in this economy MPs receive a 1.8% pay rise.

    Should businesses suffer even more with higher tax rates?
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