For better or for worse, this spring has seen business rates occupy the limelight.
You may have seen our coverage of the Covid Additional Relief Fund and its controversial rollout. So far we’re still reporting a failure to pay-out from the majority of Councils we work with.
Or you might have received your new April business rates bill and been concerned with the amount you’re paying out. We’ve already put together some tips that might help, if your new bill has come as a surprise.
But news has now come that business rates are set to raise an extra £22.5 billion this year, just as many industries are getting over a significant economic crisis. This raise has predominantly come from cutting business rates relief for those that have been hit worse through the pandemic; our hospitality, retail, and leisure industries.
However, it’s not just customer-facing businesses that are going to feel the strain. Warehouses and industrial properties are set to experience an unprecedented rise in business rates as the popularity of online shopping continues to prioritise stocking and delivery over retail zones.
So far, business rates bills for logistics spaces in the south-west of England will see a rise of 16% come the start of the new business rates period in April 2023. London will see the largest business rates hike with an increase of 35.6%, and the South East will experience a rise of 25.7%
Many businesses opt to have multiple, carefully selected units across the nation for distribution purposes. And it’s easy to see how the accumulative effect of such dramatic changes in rateable value can take its toll on a company's finances.
But it’s not just the conglomerates that’ll be damaged by the new hikes. The past few years have been a turbulent time for many of us, and companies have had to learn the hard way that their business model may no longer succeed in a post-pandemic world.
For retailers in particular, this may have meant vacating the highstreet and switching to a more online focused business strategy. Such a change in direction isn’t without significant risk, especially in an economic climate that has already crippled turnover for retail businesses and left capital at an all time low.
For those that took the leap of faith, this dramatic and unexpected rise in business rates poses yet another obstacle in what's already been a tough few years. It could even spell the end for businesses that are unable to cushion the blow.
We want to ensure that all businesses get the best possible opportunity to thrive in light of recent announcements. We strongly advise a business rates reduction and mitigation service is considered before considering the end of your business, as a RICS regulated survey can uncover historical overpayments as well as securing a reduction on your business rates bill moving forward.
Please get in touch for a chat with one of our knowledgeable team members, and a no-obligation consultation on your company's business rates.
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