BCC: Business rate changes an inevitable headache for businesses

Date: 13th July 2009

The British Chambers of Commerce (BCC) has called on the government to ensure companies are not unduly damaged by business rates, particularly those facing financial difficulties.

The BCC made its comments in response to the government's consultation on the transitional relief scheme for the business rate revaluation in 2010.

Kevin Hoctor, head of policy at the BCC, said business rates were a cost that some companies were struggling to cope with and that industry responses to past proposed increases were indicative of the overall sentiment felt towards the scheme.

He said: "Business rates are a major cost for companies struggling with cash flow. This was illustrated by the business reaction to the planned five per cent increase in April, which ministers finally backtracked on by allowing the payments to be spread out."

Mr Hoctor added that revaluation and transition arrangements would be a "headache" for cash-strapped businesses and insisted that the government make sure that the process is as straightforward as possible for businesses.

He commented: "The government must ensure that this process is implemented in a competent fashion, with adequate communication and no unfair additional costs placed on businesses."

The BCC suggested this month that their Quarter 2 Economic Survey revealed that the worst of the recession was over.