The Chancellor has decided to temporarily increase the level of Small Business Rate Relief (SBRR).
Under the proposal, properties with rateable values of up to £6,000 will be eligible to receive relief at 100%, with a tapered relief of between 100% and 0% for properties with rateable values between £6,001 and £12,000.
Paul Nash, Director of Rating, commented: “Any form of assistance relating to Business Rates, however short-term or long overdue, is welcome”.
Considering increases in the upcoming revaluation, this relief is not enough
Paul continued: “The government is allegedly making the change to the SBRR scheme to provide help with the fixed costs of starting and running a small business as the economy starts growing again.
“However, given the increases in assessment at the forthcoming revaluation, which in some areas is quite substantial and far beyond the rate of inflation, the threshold for relief appears too limited to assist real business growth in the current economic environment.”
The new levels of relief will be available for 12 months from 1 October 2010 to 30 September 2011.