BUDGET 2016: There need to be more clarity as to whether business rates will be“fiscally neutral”, Savills has warned.
David Parker, head of business rates at Savills, said: “Whilst the concessions to small businesses announced today are welcome, there needs to be clarity from the government as to whether the business rates system is to remain fiscally neutral, as the concern will now be how these giveaways will be funded.
“If the system is to remain fiscally neutral, the money will presumably come from a sharp increase in the supplement introduced to fund small business relief, which is now to be applied to properties with assessments above £51,000 rateable value and is not constructive for the economy going forwards. The small business supplement has risen from 0.7p to 1.3p over the past 10 years. A further sharp increase will result in greater inflation busting increases for many of Britain’s businesses.”
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