Business rates hike could hit consumer bills as retailers and telecoms giants hit hard best savings account rates usa
Consumers are facing higher bills for their telephone and internet services after some of the country’s biggest providers were hit by major increases in their business rates today.
Figures published this morning by the Valuation Office Agency show the proposed new rates for thousands of businesses across the UK, which will come into effect from April.
One of the biggest increases in rateable values is British Telecom, whose business rates bill for England and Wales will jump from £149m to £714m next year, although for technical reasons the company will only have to pay around half of the final amount.
Tom Mockridge, chief executive of Virgin Media, whose rates quadrupled in today’s announcement, said: “The Chancellor Philip Hammond is choosing to side-step responsibility for a huge
increase in infrastructure taxes at the very moment after the Brexit vote the UK needs to maximise investment into its digital fibre network.”
Offices in the City of London and the capital’s prime retail streets were also hit particularly hard by the new rates set out today, with a typical store on Regent Street seeing its rates increase 50pc.
London’s business rates bill will increase by an average of 11pc, and the ‘central rating list’, which contains major network properties such as gas, water, electricity distribution, telecoms and the railways, will increase by 28pc.
Businesses were dealt a blow on Wednesday when the Government announced that the transitional relief scheme, which will help companies phase in the increases in bills, would not be as generous for large firms as first thought.
Today’s figures showed that in the City of London, a typical new office building will see its bill jump from £522,000 a year to £550,000 a year, an increase of 5pc. Bank savings account interest rates comparison However, for refurbished buildings, the bill will jump from £240,000 to £321,000, a jump of 34pc.
The Mayor of London Sadiq Khan said that the increases were “a real kick in the teeth” for London businesses: “London is the beating heart of the UK economy and the danger is that this revaluation may hamper growth at a time when the Government should be focusing its efforts on supporting business and bolstering the nation’s finances,” he warned.
“It reflects the Government’s failure to reform business rates over many years. Go compare bank savings interest rates I support business in seeking a transitional period, as any changes in bills must be phased in more slowly than the Government is planning.”
In England’s regions, many businesses will benefit from a fall in rates as the new figures aim to take into account a change in property values since the downturn.
James Thompson, head of business rates at Deloitte Real Estate, said: “The bad news for the many businesses that were hoping for a significant reduction in their business rates bill, is the government’s proposals for transitional relief. Public bank saving account interest rate malaysia This comes as a blow to retailers operating in hard-hit high streets who had anticipated falls of over 50pc.”
Phil Vernon, head of rating at PwC, criticised the fact that businesses cannot appeal the new values until they come into effect in April. Compare bank savings interest rates australia “The new system will have time limits built in to resolve appeals but it’s likely that these limits could prevent any appeal being settled for at least 18 months. Savings account interest rates bmo In many case it may take several years for appeals to be formally settled,” he added.