South Shropshire MP meets Chancellor over business rates

South Shropshire MP Philip Dunne this week met the Chancellor of the Exchequer, Rt Hon Philip Hammond MP, to discuss the impact of the business rate review on businesses in the Ludlow Constituency.

Mr Dunne joined MPs Therese Coffey and Sarah Wollaston to provide information common to businesses in parts of their constituencies that are facing significant rises, like Ludlow in South Shropshire. Revaluations usually happen every five years, and allow business rates to be adjusted across the country to reflect changes in property market rents, with the last revaluation happening in 2010, based on 2008 market rent values. This year’s review in based on April 2015 rental values, and changes are due to take effect from April.

While the majority of businesses in Ludlow town centre will see a reduction or freeze in rates due to the Government’s 100% increase in small business rate relief, some businesses with a rateable value above the relief threshold are anticipating significant increases. The new relief threshold means from April, businesses with a rateable value below £12,000 will pay no business rates. Currently this relief threshold is set at £6,000. Businesses with a rateable value between £12,000 and £15,000 will benefit from tapered relief. There is also a transitional relief scheme which will phase in increases over five years.

Mr Dunne said: “This is a serious issue for businesses in areas which have seen large increases in rents, particularly in Ludlow, where some businesses are facing disproportionate rises compared to elsewhere in Shropshire or the wider West Midlands. I welcome the fact that the majority of retail businesses in Ludlow town centre will see a reduction or freeze in their business rates, given the Government’s doubling of small business rate relief. 74 Ludlow town centre businesses who would have faced higher rates under the current system, will not pay a penny more due to this measure.

But there are clearly some distorting factors affecting rating valuations, which need to be addressed. 78 town centre businesses, whose higher rateable value means they won’t benefit from relief, have an average increase in their rateable value of 50%. So I was pleased to be able to put this issue to the Chancellor directly, to make him aware of the potential effect these rate increases could have in towns like Ludlow. I have also written to those businesses I am aware of who are facing increases of over 10%, to let them know how to challenge their Valuation Office Agency valuation.”