There may be no such thing as a sure thing in politics, but with bookies giving odds of 1/66 on Andy Burnham being the UK’s next Prime Minster, his recent pledge to improve business-rate relief as and when he gets the keys to Number 10 should prove good news for many retailers.
The Makerfield MP has said in recent interviews that he intends to raise the threshold at which small business rate relief applies from £12,000, to £18,000 rateable value.
Rateable values are an estimate of how much a commercial property would rent for on the open market, with an increase in the threshold for rate relief meaning the owner of a small firm would not be taxed on the first £18,000 of their business’ RV – assuming Burnham makes good on his pledge.
The PM in waiting has also said he would increase tapered relief from £15,000 to £21,000. At present, relief decreases by 1% for every £3 above £12,000, with a cap of £15,000.
The promises are welcomed by the Association of Convenience Stores, whose chief executive, Ed Woodall comments: “Convenience stores in every constituency across the country have been hit with significant increases in their business rates bills this year, forcing many to delay or cancel investment plans.
“Andy Burnham’s proposals to raise the small business rate relief threshold would ensure that most independent convenience store retailers will pay no rates at all, relieving pressure at a time when the cost of trading is at an all time high.”
The organisation adds, however, that improving relief thresholds “cannot be the only intervention to make the rates system fairer”.
