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Gov warned not to milk London business rates following revaluation

The London Chamber of Commerce and Industry (LCCI) has warned ministers about ‘unintended consequences’ unleashed by the impending business rates revaluation, and reaffirmed its support for 100% rates devolution.

Calling for a more wide-ranging devolution package, the LCCI said that 100% rates devolution would help instigate more local investment and that part of the rates income should be earmarked for economic growth, including relief and support for SMEs.

The government is set to unveil the draft findings of its business rates revaluation ahead of their introduction on 1 April 2017, with significant rises predicted for the majority of the capital’s businesses.

Some businesses in upmarket areas of London could potentially be looking at an 80% uptick in the amount of business rates they will be expected to pay.

However, Chief Executive of LCCI, Colin Stanbridge said that the government should be wary of any ‘negative impacts’ with many London business owners already worrying about what sort of impact an increase might have on their businesses.

He said: “Government must take note that this consultation on 100% retention comes at a time of wider uncertainty with more than two in five (44%) of London businesses saying that they are worried about the impending revaluation of business rates next month, which is likely to see many in London paying far higher rates from April 2017. That may result in many negative impacts across the capital.”

Going further, Stanbridge added that it was important that London businesses were not used as a ‘cash cow’ and that with the capital’s SMEs being asked to stump up higher rates than the rest of the country, they must see the benefits of investment in their surrounding environment.

The government has committed to 100% business rates devolution by the end of the current parliament in 2020.

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