Business Rates Surge: It’s a Money‑Munching Monster
Heads up, business owners! The upcoming April tax season will add a £0.5 billion to the government purse, bumping total income from £29.4 billion to £29.9 billion. That’s the kind of increase that turns life upside down for every type of enterprise.
Why the Numbers Are Rocking
- Every year, rates climb in line with inflation. The CPI for September 2024 is already up at 1.7 %, so the multiplier jumped to 54.6p for the current year.
- Businesses in April last year already absorbed a hefty 6.7% bump, with the government adding another sausage‑sized “welcome to the club” fee next April.
- Without a governmental freeze, the multiplier will keep marching higher—just like a drunk drunkard with a party hat.
Retail Hangman’s Dilemma
The retail sector takes a 21 % slice of the tax pie. The news? Another £105 million is on the table next April, on top of a £366 million rise this year. If reliefs vanish simultaneously, high‑street shops might take a hit that’s deep enough to sink them in a sea of customer foot‑traffic.
Enter the “Retail Rates Corrector” – a 20 % cut. The government is allegedly weighing it in, but will it save the corners of Maple Lane or just the parking lot?
Logistics and Manufacturing: The Heavy Hitters
The logistics/manufacturing crew carries a 27 % share of rates. Three big moments: the 2023 revaluation, last year’s £453 million jump, and now this year’s gravedigger‑style £135 million addition. Conservatively, businesses are gearing up for a £598 million increase over these two years.
Office Space—Not the Sky is Falling
Office tenants pay 23 % of the overall tax. With the planned extra £115 million this April on top of £401 million, investing in office space feels less like ROI and more like an adventure in the “do you dread open‑plan layouts” dimension.
The Call for Freeze‑It‑Now
John Webber, Colliers’ Business Rates head, says it’s unsustainable to keep raising the multiplier. He alerts: “Two years of tax jumps will have squeezed £2.25 billion out of businesses. They’re already feeling the squeezes from wages, materials, and energy—so why add another pinch of property tax?”
Instead of a heat‑on‑the‑theater “freeze the multiplier”, Webber pushes for a 34p standard rate that every business can actually stomach. He also demands a rollout of more balanced reliefs, ensuring each segment contributes to their local amenities.
Political Post‑It‑Erbone
Labor’s conference talk glossed over rates, promising reform without tangible solutions. “We’re staring at a looming £0.5 billion uptick again next year,” Webber warns. “We’re hoping for a real fix—one that doesn’t just mask the problem.”
So buckle up, business owners. This season’s rates are a bloody elephant that might just step on your cash register unless someone tampers with the multiplier before the next tax‑ball rolls around.
