Government urged to repay businesses £1bn

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COMMERCIAL property adviser GVA has called on the Government to return what it claims is an estimated £1bn in savings, to businesses affected by the impending postponement of the business rates revaluation.

According to GVA, the Government will accrue savings in the region of £1bn as a result of not having to pay transitional relief payments when the revaluation gets deferred. David Jones, senior director at GVA, added: “The revaluation deferment is creating continued hardship for businesses in some of the worst affected areas of the UK.”

GVA said it recognises that the Government will not change its decision to delay the 2015 revaluation, despite intense lobbying.

A Treasury spokesman said: “We want to strike a balance between providing certainty for business and making sure the tax base is up to date and helps in re-balancing the economy.

“A revaluation would result in changes for many businesses, with increased bills for more than 800,000 properties. The decision to postpone will provide certainty about future rate levels which will help to stimulate growth.

“Transitional relief is designed to be funded from within the business rates system and payments to businesses whose bills have increased, are funded by transitional relief payments from businesses whose bills have decreased.”