BUSINESS rates will not increase in real terms for another five years, the Government announced yesterday.
Communities Minister Brandon Lewis said to revalue businesses could lead to unexpected hikes in the tax paid by firms.
Instead, businesses in England will be reassessed in 2017, by which time Mr Lewis said he hoped the economy would have recovered.
In a written ministerial statement, he said: “This decision will avoid local firms and local shops facing unexpected hikes in their business rate bills over the next five years.
“As business rates are linked to inflation, there will be no real-terms increase in rates over this period. This reform will provide certainty for business to plan and invest, supporting local economic growth.
“Since the last revaluation (based on 2008 valuations), the economy and property market have faced exceptional changes. A revaluation at this point would be likely to result in sharp changes to business rate bills in many parts of the country and in many sectors.
“Tax stability is vital to businesses looking to grow and help improve the economy.”
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here