Property tax increases could burden businesses, says BRC

Date: 8th April 2010

Increases in UK property taxes could leave a number of businesses, especially retailers, struggling financially, according to one industry body.

The British Retail Consortium (BRC) has claimed that the knock on effect of an increase in business rates could be an impact on enterprises ability to support jobs.

Stephen Robertson, the BRC's director general, said: "Retailers already pay a quarter of the £24 billion in business rates in England – more than any other sector.

"April's property tax hikes, including business rates revaluation, will hinder retailers' vital role in contributing to the recovery."

The organisation said commercial property revaluations, the first in five years, could see a number of firms struggling to pay business rates.

Retailers in London have the additional burden of paying the Business Rate Supplement (BRS) to pay for the Crossrail development, the BRC stated.

The organisation, which has consistently opposed BRS proposals, also voiced its disappointment that additional safeguards have not been implemented by the government to stop local authorities using the system to "boost their coffers".