Small businesses and pubs are set to receive new relief measures when latest budget rates come into effect next month.
From 1 April, small businesses will see their Rate Relief (SBRR) double from 50% to 100% and their threshold rise to £15,000.
A £3 billion transitional relief fund has been set up by the government to help phase in the changes. Local councils have also been given a fund of £300 million in relief to help those worst affected.
Sophie Robson, who recently opened Chorlton bar Henry C, has said “business rates for us aren’t a problem at the moment”.
“We’ve been getting a good amount of small business relief, soon to be 100% relief with the 2017 budget”.
“However, I’m sure when we get re-evaluated the amount will go up a fair bit and we won’t be eligible for small business relief”.
Business rates are generally re-evaluated every 5 years and are based on size, use and location of the property. Whilst Henry C currently fall under the threshold for SBRR, rates are “strangely different for similar properties in the same area” said Sophie.
Cath Goss, owner of Starfish Kids on the same road, said that steady increases in tax are “discouraging us from expanding”. The company, who have another shop in Burnage, say rateable values in Chorlton are so high it sends them over the threshold for relief.
“We’ve only just had a meeting on it with our community group Chorlton Traders… it really is an issue around here”, she said.
Dean, owner of Pad next door, told The Nubian Times that the uncertainty about ‘Business rates’ adds to the stress. He said it was “scary not knowing what the council will evaluate next”.
Business rates are decided based on a property’s rateable value, which is set nationally. Local councils are then responsible for calculating the amount and adjusting for rate relief where applicable.
Small business owner Melanie Fox, from Sale, said that:
“Trafford Council have always been really helpful in finding me any rate relief available”.
“It differs to how much that offers from year to year, but thankfully I’ve got nothing to pay this year”.