This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-37517561
The article has changed 6 times. There is an RSS feed of changes available.
| Version 2 | Version 3 |
|---|---|
| Business rate rise to push up cost of broadband, BT says | |
| (35 minutes later) | |
| BT has condemned "excessive" new business rates, which it says will push up the cost of broadband services. | BT has condemned "excessive" new business rates, which it says will push up the cost of broadband services. |
| The charges start from 1 April 2017 and will increase BT's annual valuation fourfold, from £165m to £743m. | The charges start from 1 April 2017 and will increase BT's annual valuation fourfold, from £165m to £743m. |
| "We are extremely disappointed by the new rateable values, which are clearly excessive," BT said. | "We are extremely disappointed by the new rateable values, which are clearly excessive," BT said. |
| On Friday, the Valuation Office Agency (VOA) published revaluation details of 1.96 million non-domestic properties in England and Wales. | On Friday, the Valuation Office Agency (VOA) published revaluation details of 1.96 million non-domestic properties in England and Wales. |
| But BT said: "It is highly likely that an increase of this size would lead to higher prices for consumers and businesses." | But BT said: "It is highly likely that an increase of this size would lead to higher prices for consumers and businesses." |
| The telecoms giant warned that if the proposed new rates are brought in, "it could have a negative impact on future investment in the network". | The telecoms giant warned that if the proposed new rates are brought in, "it could have a negative impact on future investment in the network". |
| That point was echoed by Virgin Media chief executive Tom Mockridge, who said: "The Chancellor Philip Hammond is choosing to side-step responsibility for a huge increase in infrastructure taxes, at the very moment after the Brexit vote the UK needs to maximise investment into its digital fibre network." | That point was echoed by Virgin Media chief executive Tom Mockridge, who said: "The Chancellor Philip Hammond is choosing to side-step responsibility for a huge increase in infrastructure taxes, at the very moment after the Brexit vote the UK needs to maximise investment into its digital fibre network." |
| BT said it will challenge the VOA's "method and assumptions". | BT said it will challenge the VOA's "method and assumptions". |
| "The Government has made it clear that it wants companies such as BT to invest heavily in the UK. We have stepped up to that challenge but we need a more joined up and logical approach from the public sector if there is to be a more conducive environment for investment," the company said. | "The Government has made it clear that it wants companies such as BT to invest heavily in the UK. We have stepped up to that challenge but we need a more joined up and logical approach from the public sector if there is to be a more conducive environment for investment," the company said. |
| 'Some relief' | 'Some relief' |
| The proposed rates will be welcomed by many small businesses, which will see a drop in their charges. | The proposed rates will be welcomed by many small businesses, which will see a drop in their charges. |
| That is because they have overpaid in recent years, as rates have been based on 2008 valuations which are now out of date, said the Federation of Small Businesses. | That is because they have overpaid in recent years, as rates have been based on 2008 valuations which are now out of date, said the Federation of Small Businesses. |
| Chairman Mike Cherry said: "Many businesses across the country will be getting some relief from years of overpayment or see their rates remain steady. | Chairman Mike Cherry said: "Many businesses across the country will be getting some relief from years of overpayment or see their rates remain steady. |
| "In other areas, there will be a big jump between the old valuation and the new one. To avoid such big discrepancies in payments, we believe more frequent valuations are necessary." | "In other areas, there will be a big jump between the old valuation and the new one. To avoid such big discrepancies in payments, we believe more frequent valuations are necessary." |
| But he added that transitional relief plans, which were announced by the government earlier this week, will help reduce some of the pain for those facing a big rate hike. | But he added that transitional relief plans, which were announced by the government earlier this week, will help reduce some of the pain for those facing a big rate hike. |
| Under proposed changes to Small Business Rate Relief announced in the March 2016 Budget, small firms with a rateable value of less than £12,000 will pay no business rates at all, with further assistance handed to those with a rateable value of under £51,000. | Under proposed changes to Small Business Rate Relief announced in the March 2016 Budget, small firms with a rateable value of less than £12,000 will pay no business rates at all, with further assistance handed to those with a rateable value of under £51,000. |
| "It means that today's revaluations could have big consequences, especially for those firms on the margins of these cut-off points," said Mr Cherry. | "It means that today's revaluations could have big consequences, especially for those firms on the margins of these cut-off points," said Mr Cherry. |