Majority of business rate bills ‘will fall next year’

Some one million firms will see their business rate bill fall next year as a result of the 2010 revaluation, the Government has revealed.

Publishing the final arrangements for next year’s calculations, the Government said it would ensure that the rate each business pays is fair and reflects changes in the relative value of property over time.

The five yearly revaluation means that 60% of business properties will be charged less in 2010/11, with the average decrease expected to be £770.

The news has been welcomed by Matthew Goodman from the Forum of Private Business. ‘We believe that it provides a fair and balanced system of transitional relief while at the same time supporting those small businesses who may struggle with an increased rate bill.’

However, the Confederation of British Industry (CBI) said it was ‘concerned’ that some business rates would go up significantly at a ‘critical time for the economy’.

‘We’re particularly concerned about the potential for sharp rises in business rates in London, where properties were revalued near the height of the market,’ commented the CBI’s Deputy Director-General, John Cridland.

In a statement the Government said it intends to develop a £2 billion relief scheme to help the ‘minority’ of firms that will be paying more. The scheme will be self funded by businesses and will limit and phase in increases.