250,000 summonses for business rates arrears have been issued by magistrates’ courts in England over the past twelve months, the Grimsey Review has discovered. This equates to roughly one in seven commercial properties, highlighting the burden of the tax on business occupiers and landlords.
The information comes from freedom of information requests to local authorities by the independent body, led by former Iceland chief Bill Grimsey, which is currently conducting a review of the high street.
A breakdown of the figures reveals that the highest percentage of summonses was issued in the West Midlands, where 25 per cent of properties are in arrears. The North West also registered highly at 20 per cent.
The news will put further pressure on ministers to look at ways of reducing the cost to businesses in the wake of the decision to postpone the next rates revaluation until 2015.
Grimsey says that his review team is looking at ways to improve the business rates system which will be included in the report.
“It’s clear to me that a root-and-branch reform is needed to make business rates fair and equitable and less of a burden on retailers as a whole,” he told the Telegraph.
Retail commentator Paul Turner-Mitchell – who is also part of the review team – says that while the government has helped families by freezing council tax, nothing has been done to help small businesses which are the lifeblood of the economy.
“Year after year we’re seeing big rate rises. We’ve had two recessions and virtually no growth in the last five years.
“Yet the government’s medicine to support businesses has been a £2 billion rise in business rates in the last two years.
“This does not make sense. We need to be supported, not seen as a cash cow,” he said.
The findings of the Grimsey Review will be presented to the three main political parties in the autumn.
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