BUSINESS BURDEN “MADNESS”

Hornchurch and Rainham MP James Brokenshire has accused the Government of pushing local firms and small shops to the wall by hiking their business rates during the recession.  As business rate demands are being sent to local firms across Havering, many firms are seeing startling rises in their bills this year, with the prospect of even bigger hikes next year.  After rent and staff, business rates are the next biggest cost to local firms.

Business rates - which are set by the Government - are to rise by 5.0 per cent next week, despite RPI inflation forecast to be negative, due to a statistical quirk in the way business rate rises are calculated.  This will increase the burden of rates by £1 billion a year.

This comes as a survey by the Local Government Association has found that 4 out of 5 councils are reporting an increase in empty shops in town centres.  The British Retail Consortium has warned that the increase will be “disastrous for the retail sector” adding that it risks leading to further insolvencies and job losses, particularly among smaller businesses.

James Brokenshire has already raised his concerns about the tax hike with the Chancellor of the Exchequer.  Commenting James said:

“Gordon Brown is dragging local firms down the road to ruin. It is the height of economic madness to be increasing taxes on local businesses in the depths of a recession.  I fear that local shops in Havering will be hardest hit by these rises, leading to more closures on the high street and yet more job losses.  The Government needs to review this situation urgently.  Increasing business rates won’t raise additional revenues for the Treasury if the firms aren’t there to pay them.”

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