Small resellers could face a hike in business rates fromnext month as they are revaluated in line with the usual five year review.
The fear raised by the Forum of PrivateBusiness (FPB), is the rates which last for five years, will be based onpre-recession rent prices from April 2008 which are well off the current marketconditions.
According to the FPB just shy of 80% of small businessesexpect their rates to go up with office-based firms braced for a 2% rise and asa revenue generating exercise for the government it will be short by severalmillion.
“While that may not be entirely accurate,small businesses are already under a great deal of pressure to pay theirbusiness rate bills and most do not see the corresponding value in localauthority services,” said the FPB’s Policy Representative, Matt Goodman.
Part of the problem for a government that is trying to bringas much money as possible into the coffers to avoid making painful cuts topublic services is that it faces the prospect of losing millions as part of therevaluation process and is being urged to offer transitional relief tocompanies.
“It is extremely important thatthe Government provides an appropriate and fair system of transitional raterelief for small businesses who will see an increase in their rateable valuefrom 2010,” he added.