Partner Article

Autumn Statement: Government leaves businesses with unanswered questions over rates, says Comtek CEO

Despite the seemingly good news for businesses in George Osborne’s Autumn Statement – for example, a complete review of the business rates structure, small business rates relief doubled for a further year, and an inflation-linked increase in business rates capped at 2 percent – Askar Sheibani, chairman of the Deeside Industrial Park Forum and CEO of telecoms repair and support company, Comtek, believes that the Government needs to be clearer on how exactly business rates will be reviewed. What’s more, he believes that there has been a lack of attention given to rail.

Sheibani comments:

“The Autumn Statement 2014 has revealed that businesses are finally getting through to the Government in terms of overhauling the current business rates system, which has been a completely unmerited way of taxing companies. However, with no clear indication from the Government of exactly how it will review the business rates system, the announcement is more of a nod to the business community, rather than an indication of real action. Businesses across the UK are left with many unanswered questions over rates, when they should have been given an action plan towards a fairer system; one that takes into account both profitability and business performance.

“As a UK business with operations both here and in the Netherlands, we currently pay thirty times more for our business rates in the UK, even though the properties are a similar size. The UK rates are damaging to the health of many businesses. They are preventing investment in revenue generating activities and ultimately thwart Britain’s ability to compete internationally.”

On George Osborne’s plans to upgrade the UK transport infrastructure, Sheibani has the following comments:

“I am disappointed to hear that the Government is now focusing the majority of its attention on road projects, ignoring the need for a cross-the-board regional rail infrastructure improvement programme. Enterprise zones are having great success at stimulating business growth and providing a much needed injection of cash into local communities. Without better rail connections to each other and to city centres – such as the Wrexham to Birkenhead line – this growth will be stunted; impinging the health of the entire economy as the cities will continue to need to support regional areas. Put simply, we must invest in our local communities.”

This was posted in Bdaily's Members' News section by Askar Sheibani .