The Government yesterday announced a proposal to hike business rates (the National Non Domestic Rate, or NNDR) by an inflation busting 5%. At the same time, it announced that it would not help small businesses any further and held the small business discount at its current level.
The rate is set annually by the Central Government (as opposed to local councils as is the case with domestic rates) and uses the Retail Prices Index as its guide. It is charged on all commercial property, thus affecting all businesses.
Mark Garnier comments: "This is another blow for businesses at just the wrong time. Just as we are seeing hard evidence of a very severe recession, the Government hikes business costs by 5%."
When the Government sets the NNDR - a level of taxation - it uses as its guide the retail price index. However, when looking at benefit payments and public sector pay awards, it uses the alternative Consumer Price Index. The RPI has consistently been the higher climbing index of the two, and demonstrates a complete lack of fairness by the Government.
Mark Garnier has been concerned for some time about the local economy of Wyre Forest and recently brought Conservative Shadow Secretary of State for Business, Enterprise and Regulatory Reform Alan Duncan MP to Wyre Forest to hear local business concerns. Amongst many concerns, high levels of NNDR were highlighted.