Government to hike business taxes on local firms |
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Government to hike business taxes on local firms at time of recession – Average business rates bill in Reading may hit almost £21.5k thanks to Gordon Brown
23rd January 2009 Labour Ministers in Whitehall were this week accused of kicking local firms “in the teeth” as it emerged that the Government is pushing ahead with plans to increase business rates on local firms at a time of economic recession. The Government is introducing a new law - the Business Rates Supplements Bill - which will allow town halls to increase business rates on local firms by levying a ‘supplementary’ rate on top of current bills. This comes at a time that business rates are already due to rise by a painful 5 per cent in April. · There are 4,742 premises in greater Reading which currently pay business rates. The average bill in Reading in 2008-09 was £19,380, raising a total of £91.9 million a year in tax in total from local firms, which is handed over to Whitehall. · Due to the impending 5 per cent rise, business rate bills in Reading will hit an average of £20,349 from April. If a supplementary business rate were imposed on top, this could push the average bill on local firms to a record £21,224 a year. · Supplementary business rates are likely to be used to fund local authorities’ current expenditure, rather than new infrastructure. Councils will be pressured into levying supplementary business rates to make up for funding pressures. Firms will not be given a proper vote on whether or not they support the new charge. According to the Government, supplementary business rates could increase taxes by up to £600 million a year if levied by every local authority. · There will also be a business rates revaluation in 2010, which may increase the bills even more for many firms – especially shops, since retail property rents have risen sharply in recent years. Higher rateable values will worsen the impact of supplementary rates. Reading East MP, Rob Wilson said, “It is important that businesses in my constituency are aware of this duplicity by the Government. Gordon Brown is doing nothing to help businesses in a time of recession and is wrecking the country. Not content with wasting billions of taxpayers money, he wants more to squander. The time has come to say ‘enough is enough’, he should be supporting British businesses not crippling them with tax rises.” Alok Sharma, Parliamentary Candidate for Reading West added, “I fear that supplementary business rates will be yet another backdoor way for Gordon Brown to hike taxes by stealth. At a time when local firms are struggling for their very survival, even higher business rates are a kick in the teeth from the Labour Government.” |
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