Record-Breaking £23 billion Income Forecast from Business Rates in 2017

Posted on 18 February, 2016 by Chris Grigorovsky

Business rates continue to be the focus of debate in commercial property, as Councils across England have forecast 2017’s income to reach a record-breaking £23.5 billion, despite many small businesses paying no rates at all.

Record-Breaking £23 billion Income Forecast from Business Rates in 2017

The near £400 million increase, according to Local Government Minister Marcus Jones, was down to the rise in the number of new businesses across the country. Latest figures show there are 900,000 more businesses now than in 2010.

In the future, however, when the rules change, councils that lead the way in driving growth will be rewarded, allowing them to keep 100% of the business rates income.

These changes are to be implemented by 2020, which means that under the existing rules, councils will miss out on receiving the full £23.5 billion, instead of the £11.75 billion under the existing rules.

Marcus Jones commented: “Councils already plan on handling out discounts of £3.2 billion which supports charitable work, fills vacant shops and encourages entrepreneurs but we want to further incentivise councils to do even more.”

“That’s why by 2020 councils will have greater financial autonomy and be handed the power to cut rates as much as they like to boost enterprise in their local areas. And those that do give business a helping hand will reap the rewards – keeping 100% of the additional growth they regenerate.”

Business rates retention has already proven financially beneficial, with local authorities keeping 50% of the business rates income they generate since 2013. This has resulted in 90% of authorities expecting to see additional business rates income from 2015.

The Government has also introduced over £1 billion support for the business rates bills in 2015/2016, as well as confirming that it is doubling Small Business Rate Relief which will continue into 2016/2017.




Leave a Reply

Your email address will not be published. Required fields are marked *


Recent Posts

Aldi’s Expansion Plan

British Steel on the verge of collapse with over 20,000 jobs at risk

Paris watches as flames engulf one of France’s most famous landmarks

Debenhams on the brink of administration as board reject Ashley’s bid

Emmanuel Macron pushes for a new Europe with European Parliament elections on the horizon

Brexit impacts property market

Brexit uncertainty impacts the property market

Oxford_Street_Selfridges_Christmas_Decorations_2017

Creative Christmas window displays

Toronto downtown skyscrapers

Brief history of skyscrapers

Savvy promotions attract early Christmas sales for retailers

Are savvy promotions attracting Christmas sales for retail stores?

Greenfield developments

Greenfield developments: The facts

facts about converting chapels churches

Things to consider when investing in church or chapel conversions

Lincoln Castle 1068

Exploring Lincoln Castle’s Georgian and Victorian Prison

the leopard inn Burslem

Facts about The Leopard Inn, Stoke-on-Trent

ancient high house Stafford

The majestic Ancient High House in Stafford

retro video game arcades

Retro video game arcades: The comeback

industrial style offices

How to achieve an industrial inspired office