On Monday at the Federation of Small Businesses Conference, David Cameron confirmed that the Government does need to look at longer term reform for the way the Government charges Business Rates.
Much of the discussion over the last few years has been with reference to the high street and in particular how the current Business Rates system favours those internet retailers against traditional high street occupiers.
The reality is that Business Rates form a substantial part of any business occupier’s establishment costs.
Business Rates payable for occupiers in central London are regularly 50% of the rents payable.
For landlords, the Business Rates can be punitive.
After only 3 months grace, landlords are obliged to pay full Business Rates on retail and office buildings that are empty.
With warehouses and industrial property the period of exemption is 6 months.
The Government has promised a discussion document on changing the Business Rates system in the spring and we look forward to seeing their proposals.