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You can find the current article at its original source at https://www.theguardian.com/uk-news/2017/nov/22/retailers-welcome-early-change-to-way-business-rates-are-calculated-budget
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| Retailers and small companies welcome business rates change | Retailers and small companies welcome business rates change |
| (about 1 month later) | |
| Retailers have welcomed a change in the way business rates are calculated, which will save them an estimated £210m over the next two years. | Retailers have welcomed a change in the way business rates are calculated, which will save them an estimated £210m over the next two years. |
| After pressure from major high street names, the tax will switch from the retail price index (RPI) measure of inflation to the lower consumer price index (CPI) in 2018, two years earlier than expected. The Treasury said the change would save British companies £2.3bn over the next five years. | After pressure from major high street names, the tax will switch from the retail price index (RPI) measure of inflation to the lower consumer price index (CPI) in 2018, two years earlier than expected. The Treasury said the change would save British companies £2.3bn over the next five years. |
| Helen Dickinson, the chief executive of the British Retail Consortium, said the move was “a hugely welcome and positive move”. She added that another change announced by the chancellor, a switch from five- to three-yearly revaluations, would also make the system fairer. Business rates are based on a valuation of a company’s property. | Helen Dickinson, the chief executive of the British Retail Consortium, said the move was “a hugely welcome and positive move”. She added that another change announced by the chancellor, a switch from five- to three-yearly revaluations, would also make the system fairer. Business rates are based on a valuation of a company’s property. |
| “These are encouraging first steps, so now is the time to commit once and for all to putting the rates system on a more affordable and sustainable footing, to support local communities, shops and jobs,” Dickinson said. | “These are encouraging first steps, so now is the time to commit once and for all to putting the rates system on a more affordable and sustainable footing, to support local communities, shops and jobs,” Dickinson said. |
| High street retailers have complained that the rates system puts them at a disadvantage to online competitors, such as Amazon, which do not have an expensive presence on high streets or in shopping centres. They have called for a total revamp of business taxes, to tackle the issue. | High street retailers have complained that the rates system puts them at a disadvantage to online competitors, such as Amazon, which do not have an expensive presence on high streets or in shopping centres. They have called for a total revamp of business taxes, to tackle the issue. |
| Alex Probyn, the head of the UK business rates division of Altus Group, Britain’s largest ratings advisory firm, said the chancellor should have gone further. | Alex Probyn, the head of the UK business rates division of Altus Group, Britain’s largest ratings advisory firm, said the chancellor should have gone further. |
| “This is a pretty cheap giveaway by government. A rates freeze was the minimum that business needed.” | “This is a pretty cheap giveaway by government. A rates freeze was the minimum that business needed.” |
| Probyn said revenues from the tax would still rise by £884m. The retail sector would shoulder £226m of that rise, according to Altus, even with rates rises limited next year to September’s CPI rate of 3%. | Probyn said revenues from the tax would still rise by £884m. The retail sector would shoulder £226m of that rise, according to Altus, even with rates rises limited next year to September’s CPI rate of 3%. |
| Small businesses and retailers welcomed plans to introduce legislation to neutralise the impact of the “staircase tax”, the tax imposed on individual rates bills for businesses occupying multiple floors of a property with more than one tenant. | Small businesses and retailers welcomed plans to introduce legislation to neutralise the impact of the “staircase tax”, the tax imposed on individual rates bills for businesses occupying multiple floors of a property with more than one tenant. |
| The change resulted in substantially increased business rates for thousands of firms, backdated to April 2015 in England and April 2010 in Wales. Under the changes announced on Wednesday, local authorities will have to potentially return millions of pounds in back taxes. The chancellor has promised that they will be fully compensated for the loss of income. | The change resulted in substantially increased business rates for thousands of firms, backdated to April 2015 in England and April 2010 in Wales. Under the changes announced on Wednesday, local authorities will have to potentially return millions of pounds in back taxes. The chancellor has promised that they will be fully compensated for the loss of income. |
| Budget 2017 (November) | Budget 2017 (November) |
| Retail industry | Retail industry |
| Tax and spending | Tax and spending |
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