Regional Small Businesses To Pay Less Rent

The 2017 business rates reviews, announced by George Osborne in Budget 2016, will see business rates relief double from April 2017.

Regional Small Businesses To Pay Less Rent

Regional retailers are set to benefit from increased rent relief come while London shop owners have to expect to pay more, according to new research from CBRE.

The survey, which tracked the percentage rateable value movement from 2010 to 2017, has revealed that smaller cities such as Bristol, Leeds and Aberdeen will experience a rateable value decrease of at least 33%, with the southwest city topping with list of benefactors with deductions of up to 44%.

Such a reduction in rateable value presents a good opportunity for retail business owners to possibly increase their number of premises in these cities, such is the reduction in occupancy costs. However, the decrease will not be felt in nation’s larger cities  – particularly the capital.

Central London areas such as Mount Street could rise by as much as 170%, while businesses in Birmingham and Liverpool will see rateable value increases of around 9% and 1% respectively.

The 2017 business rates reviews, announced by George Osborne in Budget 2016, will see business rates relief double from April 2017.

Rateable value decrease

  • Bristol -44%
  • Leeds -34%
  • Aberdeen -33%
  • Newcastle -27%
  • Reading -22%
  • Cambridge -21%
  • Southampton -18%
  • Manchester -10%
  • Edinburgh -5%
  • Glasgow -3%

Rateable value increase

  • Mount Street (London) 170%
  • Brompton Road and Knightsbridge (London) 52%
  • Oxford Street West (London) 50%
  • Oxford Street East (London) 20%
  • Birmingham 9%
  • Liverpool 1%

Tim Attridge, senior director, rating at CBRE, said:

“With the cumulative rateable value set to fall across the UK, the government will be seeking to maintain the level of tax generated by the business rates system. Therefore, the multiplier will be higher than we’ve ever seen immediately after a revaluation. Retailers should be aware of what the potential changes might be, and the impact on their business.”

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