Business rate hike looks more likely

Thousands of licensees face a hike in business rates as the Business Rates Supplement Bill moves one step closer to becoming reality.

BRS, which could see more than 6,000 licensees pay an extra £1,000 on top of existing bills, was debated in the House of Lords last week.

BRS will allow large city or unitary councils to set a supplementary rate for economic development locally.

The news comes as the Chancellor failed to reconsider applying the extra rates in the Budget, despite lobbying from Business in Sport & Leisure and other groups. Brigid Simmonds, chief executive of BISL expressed disappointment that BRS would go ahead, but added: "Given London's Crossrail project, the likelihood of putting off supplementary rates was not great."

Lord Bates, the Shadow Minister for Communities & Local Government opposed the Bill. He said: "Businesses face being hit next year by an army of new taxes."

He listed the rates revaluation, empty property hikes and the end of transitional relief, which although postponed has not been cut. He described the measures as "a lethal cocktail that poses a real threat to businesses across the country."

He also asked if it was not prudent that local councils could apply a business rate discount given the current economic crisis.

Baroness Andrews, parliamentary under secretary of state for the Department of Communities & Local Government, introduced the Bill. She rejected claims it was just another tax on business saying: "This is not a measure that in any sense treats businesses as cash cows."