Business rates soared by 49% in past 14 years
Data from Altus Group showed this was up 49% from the £19.28bn net yield during 2010/2011 in England to £28.76bn forecasted to be collected during this financial year.
Altus Group president of property tax Alex Probyn said: “The average pub, restaurant, shop, office and factory are now paying £4,714 a year more in the business rates tax than in 2010 through the cumulative effects of increasing the tax rates by inflation.
“The choice to increase the standard rate of tax by 6.7% left firms in April with the biggest year on year increase in the standard rate business rates since 1991 at an effective tax rate of 54.6%.”
Manifesto details
The Conservative Party has now launched its manifesto ahead of the general election on 4 July.
Previously, the party shelved shelving plans for an online sales tax previously and saying the 2023 business rate revaluation would address the tax burden imbalance between online retailers and bricks and mortar businesses.
In the general election manifesto, it promised to “continue to ease the burden of business rates for high street, leisure and hospitality businesses by increasing the multiplier on distribution warehouses that support online shopping over time.”
Relatively insignificant
Altus also estimated there were 1,520 large distribution warehouses in England this financial year, paying £1.31bn in the business rates tax.
Probyn said while the proposal was eye-catching and populistic, in reality the measure was “relatively insignificant”.
He added: “The level of support for the high street ultimately will depend upon the level of the supplement levied on online retailers.
“But a 2p supplement on the current standard multiplier of 54.6p would only raise about £50m to redistribute.”
