The increase in business rates that takes effect in April this year will see a steep rise for Small and Medium Businesses in the UK. This is already likely to present a serious problem for enterprises, and it appears the government may be forced to rethink. The negative impact on potential business growth is not welcome, particularly in light of companies dealing with various other uncertainties, which impact consumer spending, as well as considerations for future development and growth plans. SMEs account for 99% of all private sector businesses and are crucial for economic growth in the UK. Many of these may be impacted to the point of threatening their ongoing livelihood.
It is true that some businesses will experience small falls in business rates, among them giants such as Amazon and ASOS. About a third, however, will see sharp increases, some of them even expecting an immediate rise of 40%.
“The Federation of Small Business is warning that half of those facing hikes, will reduce, postpone or cancel investment, with nearly a fifth considering closing down or selling up.”
Based on the current economic climate, and with multiple uncertainties including Brexit, our team at Akoni are hopeful that the government will complete a full review prior to implementing any further policies that could negatively impact businesses.
Article from BBC News @BBCNews
Posted on 27th of February 2017