The Government should switch the annual hike in Commercial property business rates from RPI (Retail Price Index) to the lower (CPI) Consumer Prices Index). This will see rates bills only rise by 5.2% not 5.6% in April says Marcus Andrews FRICS who deals with Rating Appeals at Goadsby in Bournemouth.
Each year the Government uses the annual rise based on the September RPI to increase rates bill. In September 2011, RPI “spiked” with largest monthly rise seen in 2011. In December it was only 4.8%.
Back in March 2009, the Government when faced with a similar large rise brought in some “capping” measures, just one day before the rise – but it was too late for most councils who had to re-issue bills over the several months.
Marcus Andrews brought his concerns to the attention of Annette Brooke (MP for Mid Dorset and North Poole). She tabled a Parliamentary question on the matter and the Government minister Bob Neill revealed, in his reply, some concession to lessen the impact of the rise:
“We are giving businesses the option of spreading the retail prices index increase for 2012-13 over the next three years. Businesses will be able to defer payment of 60% of the retail prices index increase in their 2012-13 rates bills until 2013-14 and 2014-15. This will give businesses flexibility to manage their rates bills in the current economic climate, help their cash flow, and give them time to adjust to the impact of inflation”.
“The law allows the Government to change the basis of the annual rise. If it wanted to help the business community, they could order a 0% rise or even a reduction – they could so much more than this” says Marcus Andrews.
