| Topic: | Re:Another High Road Casualty | |
| Posted by: | Diane Bardon | |
| Date/Time: | 17/01/12 11:52:00 |
| The Council only collects business rates on behalf of the government. The government valuations offices normally works out how much business rates must be paid by each business. Every 5 years they collect all the information (the rents the tenants pay) then they value the properties i.e. the rent they think is fair for this particular parade, this valuation refer to the “rateable value”. The government set a % in the £ to work out how much business rate must be collect it each year so, for example this year the government set 45 p in £ and I think it as 44 p last year. For example if the valuations office valued a business premises i.e. the rateable value @£21500, then the rate that must be paid every year, for the 5 years is 21500 x 0.45 p and it is £9675, this demonstrates that it is Not in the governments interest for the commercials rents to be reduced, i.e. less revenues and the current rate of 45p in the pound will go up this year. This one of the reasons the Admous closed their business and is because they were paying far too much in business rates although the owned their properties. It makes sense if you own the freehold of your business and you can’t succeed as business, is to rent it out, you are better off, but not every small business has this option. Only recently it was reported that Dr Neil Bentley, deputy director-general at CBI, has ask the government to recognise the growing burden that they are placing on companies right across the country at critical time. To my understanding that there are no such businesses rates paid in any other European countries in I Ireland and I think so I do not understand why the government had set it so high. This one of the reason that some large companies, food chains & multiples justify why they do not pay capital gains on the profits they make in the UK, is because they pay enough revenues in business rate for their premises. |