BRC highlights business rates victory
Apr 01 2009
The British Retail Consortium (BRC) has welcomed the government's decision not to increase rates by five per cent.
Companies will see a two per cent rise in the tax from today, with the option of spreading the remaining three per cent over the next two years.
Stephen Robertson, BRC director general, says the development shows the government recognises that retailers are facing harsh conditions and could not support an extra £250 million in tax.
Robertson comments: 'Allowing businesses to postpone the extra costs from ending the phasing in of the 2005 revaluation scheme will be particularly helpful for smaller retailers.'
However, he points out that today will still see firms hit with a £100 million increase in their bills, while the government has no plans to reduce the overall £1.6 billion hike in business rates planned by 2010/11.
Richard Lambert, director general of the Confederation of British Industry, adds that the deferment of business rates is a 'step in the right direction' but highlights that his group has been campaigning for a two-year freeze on the payments.
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