East Hampshire District Council leader Cllr Richard Millard has warned the government that some businesses will face “potentially crippling consequences” when business rates bills hit their doormats this month.
In an open letter to chancellor Rachel Reeves, Cllr Millard said the increases would be a “body blow” for struggling businesses and could have damaging consequences for the local economy.
A three-yearly revaluation by the government has meant many businesses will see their business rates go up significantly.
A wide range of schemes are available to help ease the transition into the higher business rates, but the overall impact is likely to be hard on many businesses.
Cllr Millard said: “The increases in business rates bills have come at just the wrong time for our businesses and I have written to the government to lay out just how worried I am about the impact this will have on the local economy.
“Businesses are already struggling to contend with inflation and market uncertainty - now the increase in the rateable value and the removal of the retail, hospitality and leisure relief.
“The government now expects businesses to swallow more expense that could have a potentially crippling effect on some.
“East Hampshire District Council sends out the bills but it does not set business rates. There are some schemes available to support businesses that are struggling with bills and we have included an explanatory letter with the bills that sets out what support your business is eligible for. I urge people to read that.”
Support is available through programmes such as the transitional relief scheme and the supporting small business relief scheme. Eligible businesses will see details on their bill.
The revaluation means some businesses will see their bills increase by £800 or a percentage dictated by their rateable value, whichever is greater.
Businesses with a rateable value of less than £20,000 will see an increase of five per cent. Businesses with a rateable value of less than £100,000 will see an increase of 15 per cent. Businesses with a rateable value of more than £100,000 will see an increase of 30 per cent.
Of the 4,020 businesses in East Hampshire, 183 have a rateable value above £100,000.
The retail, hospitality and leisure relief, providing eligible businesses with 40 per cent rate relief, ends on March 31.





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