BUSINESSES which make it through the year ahead hoping that they have overcome the worst of the recession are likely to be hit by a new blow in the form of increased business rates, warns Liverpool law firm DWF.
On April 1 next year, the UK’s 1.8m commercial buildings will be given new rateable values based on their value in April, 2008, when the property market was higher than it is today.
This, together with a 2% rise in uniform business rates introduced in April this year and a further 3% rise due to be phased in over the next two years, could lead to significant increases for many businesses, warns DWF. The situation is further compounded by the abolition last year of rates relief on empty properties, which means businesses must now pay full business rates on space which is empty for more than three months.
Karen Phillips, real estate litigation associate in the firm’s Liverpool office, said: “It is likely that the new rateable values will be set at an unrealistically high level.”
