News

Crunch Time For Small Business Rates

January 27, 2012

A business rates increase looks likely to be on the cards for April, coupled with the quarterly rent demands (due in March) suggests that this could be a difficult time for small businesses in the UK, according to the British Retail Consortium (BRC).

The BRC have suggested that the possible growth in rates over the spring period is likely to prove to be a tough time for small businesses with such little expected growth.

A spokesperson for the BRC, Sarah Cordey, suggested that the proposed 5.6% increase in business rates at the start of April and the quarterly rent payments in March are likely to hurt small firms.

In light of this, the BRC have called for an end to the quarterly rent system on commercial properties and operate on a monthly billing system instead. It is expected that this will help ease small business cashflow issues and help to ensure that they are not left struggling with large bills.

Ms Cordey commented:

"What we are calling for, and what we are increasingly seeing when new retail leases are being agreed, is landlords being willing to accept modern, one month payment in advance.

"The quarterly thing is an anachronism in this modern day and age, when you can make instant bank payments so quickly. So we'd like to see more landlords move to that monthly payment approach, which would iron out some cash flow issues."

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