Central Bedfordshire Council have 9th highest increase in business rates
New Research has found business rates are a “substantial” cost for many companies to factor in
Central Bedfordshire Council has made the top ten list of councils with the biggest increase in business rates over the last five years, according to research by BPI Asset Disposal Solutions.
The company said business rates are a “substantial” cost for many companies to factor into their bottom line.
It sent Freedom of Information requests to 317 local councils to discover the ‘average annual business rates costs, or current liability payable over the last five years’, and ‘the total value of the business rate relief granted in 2022’.
Central Bedfordshire Council ranked ninth with a 12.17 per cent increase in business rates charged in the last five years.
But Central Beds Council says it has “no influence” over the multiplier used to calculate rate bills – and added during the pandemic more than £85million was handed out to local businesses as grants.
BPI’s statement added: “Interestingly, Central Bedfordshire Council promised that their council tax rates will not increase for 2023/4, without any cuts in services, making them unique amongst local authorities.”
North West Leicestershire had the biggest percentage increases with 29.13 per cent.
Henry Spencer, operation director at BPI, said: “We understand that many businesses are feeling the impact of the ongoing economic uncertainty and cost of living crisis, so we wanted to understand what additional support businesses in Bedfordshire could be utilising to help through these difficult times.
“If you are struggling with rising business rates and are unable to take advantage of the relief available, reviewing your current plant and machinery, excess stock and other business assets and streamlining this will save you space and allow you to enhance your cash flow.”
A spokesperson for Central Bedfordshire Council said:” Business rates, collected by local authorities, are the way that those who occupy non-domestic property contribute towards the cost of local services.
“Under the business rates retention arrangements introduced from April 1, 2013, authorities keep a proportion of the business rates paid locally.
“This provides a direct financial incentive for authorities to work with local businesses to create a favourable local environment for growth since authorities will benefit from growth in business rates revenues.
“The money, together with revenue from council tax payers and certain other sums, is used to pay for the services provided by Central Bedfordshire Council.
“Central Bedfordshire Council calculates the business rates bill by multiplying the rateable value of the property, set by the Valuation Office Agency (VOA), by the appropriate multiplier set by the Government each financial year for the whole of England according to formulae set by legislation.
“Accordingly, the council has no influence over the rateable value or multiplier used to calculate rate bills.
“If the rateable value is increased by the VOA the council is duty bound to recalculate the business rates payable based on the new rateable value.
“Business rates cannot be compared to council tax as one is set centrally by Government and relates to non-domestic properties, whereas the other, council tax, relates to domestic properties and is set (subject to limits imposed by Government) by the council and includes an amount for the local preceptors i.e., Bedfordshire Fire & Rescue Service, the police and crime commissioners and town and parish councils.
“During the pandemic Central Bedfordshire Council distributed over £85m of grants to local businesses.
“The council continues to support businesses through the administration of the various mandatory and discretionary rate relief that qualifying ratepayers are entitled to.”