Local businesses facing staggering rates increase
Date published: 17 October 2017
Business rates bills for the 6,640 businesses across Rochdale from 1 April 2018 will rise by a staggering £3,031,605 without government intervention warns CVS Business Rent & Rates Specialists, as the ONS reports The Retail Prices Index (RPI) at 3.9%.
RPI affects business rates bills as the Uniform Business Rate (UBR) multiplier increases annually in line with September’s RPI inflation.
The Retail Prices Index has rapidly increased from 2% last September to over 3% since February, increasing from 3.6% in July to 3.9% in August; the highest level since January 2012.
That means, on average, businesses across Rochdale will have to find an extra £457 each to pay the government next year, even though for some, the struggle to pay is already too much.
Mark Rigby, Chief Executive of CVS, has urged the Chancellor to be "bold" in his Autumn Budget and freeze rate rises next year, he said: “Property taxes in Britain are already the highest of any European nation both as a percentage of GDP and overall taxation.
"Brexit is driving inflation and businesses are holding off from investing because of the current economic climate of uncertainty. Insolvencies are expected to rise over the next two years.
“To plough ahead with such rate rises would be foolhardy and the Chancellor must be bold in his vision with a freeze.
“I would urge all businesses in Rochdale to check that their assessment is fair and accurate.”