The issue has been exacerbated by the promised relief package announced in Philip Hammond’s spring budget not reaching businesses in time, along with poor communication between the government and local authorities, compounded by the General Election.
From 1 April 2017, rateable values of properties were changed in line with property prices for the first time in seven years. The revaluation was initially due two years prior but was delayed by David Cameron due to the 2015 General Election.
In his spring budget, Hammond pledged £440m for firms affected by increases in business rates, with a relief fund of £115m set aside for "cliff-edge" small businesses that had previously paid no rate, handing them a cap that would have prevented their bills being set at more than £50 a month. Another £300m was set aside for local authorities to provide discretionary relief to those experiencing the biggest rises, and £25m allotted for struggling pubs.
Business rates specialist CVS found almost 25,000 businesses were no longer eligible for relief with many of those still not receiving any funding from the relief measures promised by Hammond.
While the Department for Communities & Local Government (DCLG) has given local authorities the green light to provide the relief, many authorities don’t have the resources, money or software to process it.
The main areas affected as reported by the Forum of Private Business (FPB) have been Suffolk, Kent, Surrey and the South London boroughs, with print companies in those areas reporting heavy increases.
FPB managing director Ian Cass said: “There is a need for a proper serious look at this, a solution-based conversation that isn’t just about scoring party political points on each other, and to come up with good suggestions about what we do with business rates.”
Reydon, Suffolk-based Micropress reported a rise of around 25% in its business rates and is now paying a five-figure sum.
Financial controller Steve Wilson said Micropress’ significant rise is low compared to smaller businesses in Southwold, Suffolk, where placards had appeared citing 177% rises from outraged local business owners.
“It won’t sink us or anything like that but it is an issue. We have to watch all costs because it’s good business practice and this is a big increase,” said Wilson.
Egham, Surrey-based Kingsley Print & Design has experienced an approximate 10% rise.
“On our estate we have 12 industrial units and we are talking amongst ourselves about how much rates have gone up,” said managing director John Vaughan. Vaughan has lodged an appeal for government relief, aided by a local consultant, as has Wilson, employing CVS to help.
Felixstowe, Suffolk-based Flyer Press managing director Jon Trotter planned on relocating premises in early 2017 but blamed “rents and rates” as a reason the plans were mothballed.
Trotter said: "I think that's the problem with the print industry, as prices and rates have gone up and industry has been pushed in such a way you have to be more lean and mean."
