Read the latest news about alternative business finance.
The British Retail Consortium warns that from April 2018 retailers could face a £280 million rise in business rates across the UK. This prediction has arisen since the retail price index rose to 3.9 per cent this August and is now expected to exceed four percent in September. This news could have a serious effect on the way you grow your business as you may find business rates unaffordable as of next year.
Tom Ironside, Director of Business Regulation at the BRC, said: “It is highly questionable whether communities across the UK can afford a spike in business rates of this scale, and any resulting loss of commercial investment will contribute to fewer shops and fewer jobs.
Nearly one in every 10 shops currently lies vacant, and those in economically vulnerable communities in particular remain persistently empty, limiting the chances for these places to thrive.”
Such a rise could have a huge impact on the UK economy and experts have criticized the platform (the Retail Price Index) that the government uses to calculate business rates.
Jonathan Atow, director general at the Office for National Statistics (ONS), called it a “flawed measure…with serious shortcomings”. Atow said the Consumer Price Index (CPI), the model that is used by the ONS, represents a more “comprehensive” picture of the economy.
However, this model will not be used any time soon as the Treasury has restated its plan to wait until 2020 before moving business rates indexation to the CPI.
If you are concerned about the effects of business rate rises and how you will continue to grow your business next year, we have gathered some tips to help.
Some businesses are entitled to discounts on their business rates from their local council, this is called business rates relief. There are different types of rate relief, one of which is the small business rate relief.
You are entitled to small business rate relief if your property’s rateable value is less than £15,000 or if your business only uses one property.
Your business rates are calculated against your property’s rateable value and this is set by the Valuation Office Agency (VOA).
The VOA have a service that allows you to challenge your rateable value or to make changes to your property details. If you have challenged your rateable value your case will be reviewed and the changes will be made. You will then pay the correct business rates as they will be recalculated against your new rateable value.
Maintaining healthy cash flow is important so your business can adapt to unexpected changes or expenses.
If you take card payments, a business cash advance is a quick and easy way to raise funds to grow your business despite a hike in business rates. This instant cash flow boost allows you to continue to expand and grow your business with the advantage of flexible repayments that are tailored to your cash flow. Talk to one of our advisors today to find out how much you can raise.