Colliers International has issued a number of ‘asks’ it hopes Chancellor Rishi Sunak will address as he outlines what the Government intends to spend for the financial year 2021-22.
According to John Webber, Heads of Business Rates at Colliers International, it is essential the Chancellor does not ignore business rates, which contribute £26bn net to the economy. The business rates team at Colliers suggests the Chancellor:
- Announces an extension of the current 2020/2021 100% business rates holiday for the retail and hospitality sectors which is due to end next March- for another six or even 12 months from April 2021 - giving the sector time to recover from the impact of the Covid-19 pandemic.
- Provides business rates relief for other sectors that have not had the advantages of the business rates holiday.
- Extend the deadline dates for applications for the lockdown grants so that businesses can take advantage of the forthcoming relaxation of current State Aid limits. The European Commission’s ‘Temporary Framework’ states that limits on State Aid will increase to 3m Euro per business for those facing a declining turnover (at least 30% compared to the same period of 2019) due to the coronavirus outbreak. The UK Government has applied to introduce the revised limits but is still waiting for clearance to put this into practice. Meanwhile grant application deadlines are looming so, without an extension, it may be too late for many businesses to benefit.
- Makes good on its promise to bring in proper business rates reform. In particular, Colliers urges the Government to bring about an immediate reduction in the multiplier to £0.30, from current levels of £0.51 - making business rates a more affordable tax across the board - so all rate payers can benefit. There should be an immediate reform of the reliefs system also.
- Brings in a business rates arrears moratorium for those businesses that, because of the pandemic, have been unable to pay their business rates bills. Colliers suggest this should be until April 2021, allowing businesses a chance to sort out their finances. According to latest appeal figures, in the period 1 April - 30 September 30th 2020, an average of 1000 businesses began the appeal process against their businesses rates assessments, on the grounds of an MCC (Material Change of Circumstance) to their business operations as a result of Covid-19 and Lockdown.
Colliers urges the Government to instruct Local Billing Authorities to show flexibility and support to business rather than stepping up the heavy-handed court summons.