Monday 5 November 2012

Pubs and shops face more tax rises next April

Business rates to pubs and city centre shops will have risen by almost 13% since 2011 after a 2.6% increase comes into force next April.

With pubs and shops already struggling the Taxpayers Alliance have launched a campaign against this increase, more details here.

Business rates went up by 4.6 per cent in 2011 and 5.6 per cent in 2012, and they are set to rise by a further 2.6 per cent next April.

Imposing a substantial rates hike for the third year running can only lead to more empty pubs and shops on high streets and fewer chances of work, especially for young people. That is why The Tax Payers Alliance are calling on the Government to freeze business rates. They are working with the British Retail Consortium and the magazine Retail Week, and we need your help too. They have produced a new website making it easy for you to urge your MP to back action to freeze business rates.

Results of a new survey of BRC members – with respondents representing nearly a third of the British retail market and employing 900,000 people – have sounded alarm bells about the impact of the planned rise. Released to coincide with the launch of the campaign, it finds that:
•70 per cent say another rates hike would force them to cut back on job creation and/or curtail investment in existing or new stores

•15 per cent say that they would be forced to close stores

According to Mathew Sinclair of the Tax Payers Alliance
“Britain’s high streets have been suffering in recent years and excessive business rates make it much harder for stores to survive and prosper. Businesses of all kinds struggle with rates as they are a major bill that they have to pay in good times and bad, whether or not they are making the money to pay it. Freezing business rates would be a great way of letting firms grow, prosper and create new jobs.
“At the TaxPayers’ Alliance, we are very excited to be working with the British Retail Consortium to make the case that business rates should be frozen. High taxes are getting in the way of economic growth and a freeze is a reasonable proposal to help companies fighting their way out of the recession. Hopefully direct pressure from their constituents will encourage MPs to back action for lower rates.
“If MPs want to show that they are on the side of small businesses in their area, backing a freeze in business rates is a great way to do it.”

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