Rates shake-up 'tax on British life'

Business leaders have called for the revision of the rates to be delayed, while the Tories accuse the Government of "economic incompetence".

County cricket grounds, football stadiums, livestock markets, petrol stations and caravan sites are among those that will be worst affected, Ministers admit.

The countryside could be particularly badly hit and there are warnings higher bills for petrol stations could be the final straw for independent retailers already struggling to make ends meet.

But the Government is ignoring the pleas to put off the revaluation and insists most businesses will actually see their bills go down.

It is also putting in place a 2bn relief scheme to help firms affected.

The recalculated business rates, which raise the Government 21bn, will come into force in April, just a month before the expected general election and with many small firms still finding life hard because of the recession.

Shadow Local Government Minister Justine Greening said: "It is the height of economic incompetence for Labour Ministers to change the way that a 21bn tax works in the middle of a devastating recession without any impact assessment.

"Many types of firms face massive increases – from livestock markets to hotels to beach huts. This is the worst possible time for such a rates shake-up."

The Tories say that in Northern Ireland the revaluation has been postponed because of the impact of imposing large tax rises in the middle of an economic crisis.

Ministers are also accused of failing to carry out an assessment of the impact the changes will have on businesses, for most of whom rates are a major burden.

According to Tory figures, county cricket grounds will face an average 59,000 a year rate increase and football stadiums 97,000 – although rugby league grounds will be better off.

Petrol stations will pay and average 5,300 more, while farm shops could see a 30 per cent increase.

Nick Pontone, policy director at Yorkshire and Humber Chambers of Commerce, said the revaluation threatened "real damage" for some firms.

"The problem with every revaluation is that many businesses will end up paying more.

"The real victims are those whose bills soar as the result of property uplift in their areas, which is unrelated to their business performance and ability to pay.

"We recognise the need for periodic revaluations but the timing is very bad because the recession has put cashflow under huge pressure ."

He urged the Government and Valuation Office Agency to implement the revaluation "sensibly" to protect vulnerable businesses, but also urged the Conservatives to "spell out what they would do differently to help businesses deal with bigger rate bills".

In a written answer to MPs, Communities Minister Barbara Follett said: "Over a million properties will see their business rate liabilities come down as a result of revaluation.

"The Government intend to put in place a 2bn relief scheme to limit the impact on the minority with bill increases.

"This is on top of the wider support available to help ease business pressures including discounted rate bills for small businesses and deferring tax payments.

A spokesman for the Department of Communities and Local Government said: "Revaluation does not collect an extra penny in revenue for the Government. The majority of businesses will see their rates fall."