Commercial property owners ‘could struggle with business rate rises’

Posted 23/09/2010

The government has been urged to reconsider its forthcoming business rate rise by a number of organisations which fear its effects on commercial property.

Research firm the Local Data Company (LDC) warned that the business rates bills for some shops could go up by as much as 22 per cent in April 2011, which could threaten those who let out commercial property as some outlets may be forced to close.

Spokesperson Matthew Hopkinson said: “You could argue that it is another nail in the coffin of high street shops.”

He said the coalition should change the system that is used to calculate business taxes in order to avoid damaging retail.

The British Retail Consortium has also called for an alternative to the retail prices index when it comes to calculating business taxes.

According to a recent survey by the LDC, city centres in London and the south-east are currently performing better in terms of vacant properties than those further north.