As anyone who listens to, or reads the national news will know, businesses across the country are about to receive a revaluation of their Business Rates.
It’s the first time the Rates have been reviewed for seven years and although many areas are looking forward to a reduction in their rates, Government figures seen by OnTheWight (below) state the Isle of Wight is expected to see a rise of 3%, equating to around £1m extra.
Massive funding gap
At the moment the Rates – based on the rental value – are set by the Government and collected by the Isle of Wight council, who retain some of the income.
However, as discussed in the Isle of Wight council chamber, by 2020 the council will be in charge of setting and retaining 100% of Business Rates, but will need to raise enough income to plug the massive funding gap as the Government stops providing their annual grants.
Majority of areas see a decrease
According to the Government figures, 252 areas will see a decrease to their Business Rates, nine will see no change and 64 areas – including the Isle of Wight – face an increase.
The Chancellor of the Exchequer, Phillip Hammond, has said he will take a look at those areas worst affected, the most extreme being West Somerset with a 66% increase, double that of Hackney at 32%.
Response from MP
OnTheWight wrote to Isle of Wight Conservative MP, Andrew Turner’s office asking what he will do to ensure Island businesses are not affected by the Business Rate revaluation process.
He replied today (Wednesday) saying,
“Everybody who is paying attention in the National media is aware there is a dialogue going on about the new Business Rates proposals but I am taking part in those discussions.”
The revaluations
The list of revaluations can be found in the document below.
Thanks to Iain McKie for the heads-up.
Article edits:
Comment from Andrew Turner added Wednesday 11.55am.
Image: Images of Money under CC BY 2.0
