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Business rate rise to be largest in over 15 years

Small business groups have criticised the forthcoming increase in business rates of 5% - the largest rise since the present system was formed in 1993.

At a time when many small firms are struggling in the current recession it is argues that the extra cost could prove to be too much for some firm companies.

"If the government is serious about helping firms survive the worst downturn in a generation, it should be cutting the rates until the economic situation significantly improves," said Neil Bentley of the CBI.

The increase is due to be implemented in April and would raise an extra £1bn on top of the current £20bn currently achieved by the rate.

Although local governments collect the tax the rate was set by central government according to retail price index inflation figures. However, the government are being criticised for using a figure from last September, when the index was running at an 18-year high.

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Post Date: February 3rd, 2009