Business rates: reaction
Marco Forgione, BADA chief executive
“The new thresholds should encourage small businesses to remain in their location of choice and not be forced out because they cannot afford the cost of premises.”
Sue Terpilowski, The Federation of Small Businesses London policy chair
“Rateable values have been rising higher than property values and for many small businesses, rates can be crippling.”
Rebecca Davies, LAPADA chief executive
How business rates are calculated
• Business rates are based on the value of the property that a business occupies.
• Rates are usually the third largest outgoing for small businesses after rent and staff costs.
• Commercial property is revalued every five years. However, following the recession, the government delayed the last revaluation by two years.
• The latest revaluation is based on rentable values on April 1, 2015 and comes into effect on April 1, 2017.
• The tax brings in around £27.8bn a year for the Treasury, making it the sixth biggest source of income.