03 March 2017
Business rate rise ‘to hit profits of small firms’
More than half of the small companies facing a hike in their business rates next month fear their profits could fall as a result, new research suggests.
According to the Federation of Small Businesses (FSB), 36% of small-scale firms expect higher business rates from April 1.
Of these companies, 44% said their rates could jump by more than £1,000 a year, with 21% predicting their annual bill will climb by more than 40%.
Looking at the impact which higher business rates could have, the FSB said 54% of affected small companies expect profits to fall, while 38% fear that they may have to increase their prices.
Mike Cherry, the federation's national chairman, said of the findings: "The major win at the latest Budget to exclude 600,000 small firms from the business rates system remains hugely important. However, our survey shows the delayed revaluation harms too many small businesses, who face unsustainable and unaffordable rises."
Following their first revaluation in seven years, business rates will notably rise for many companies in the South East of England next month.