The UK chancellor is being urged to ease the charge of business rates after figures show councils are sending bailiffs to 310 companies a day over arrears. An investigation by the real estate adviser Altus Group have found that councils have sent bailiffs to more than 78,000 companies across England, these companies were struggling to pay their business rates.
Business rates are the equivalent of council tax and are based on the property value. Rates have been the issue for the high street struggle as the rates are continuing to rise forcing businesses to shut if they can no longer afford to pay.
The bailiffs were given the power to enter the businesses, seize good and sell them at a public auction in order to settle the company debt. Around one in 16 of all businesses faced having their goods seized by bailiffs last year.
Around 50 retailers including Marks & Spencers have wrote the the Chancellor Sajid Javid to demand action on business rates. Firms across England could see their rates increase by a total £536m for 2020.
Robert Hayton, head of UK business rates at Altus, said: “It’s not the mechanics of the rating system that is of primary concern of business but the level of the actual rates bills.”
“Commercial property is already making a significant contribution to overall UK tax revenues. With the highest property taxes across the EU, the chancellor should recognise this in his upcoming autumn budget by removing the automatic inflationary increase.” He added.
