ACS

ACS has criticised Government for pressing ahead with the costly and damaging legislation that would allow Councils to levy additional rates on businesses in their authority area.

ACS Chief Executive James Lowman said: “Business rates supplements are a bad idea and are being introduced at the worst possible time. The burden of business rates weighs heavily on retailers, it is predicted that the number of empty shops will double in 2009 to a record 15%. During the economic downturn business rates supplements threaten to make a bad situation worse.”

Government introduces the Business Rates Supplement Bill into Parliament on Monday 12th January. The Bill gives Councils the power to levy up to an additional 2 pence in the pound from local businesses to pay for improvements to local infrastructure. The Bill also sets out a consultation structure that should be applied in deciding whether rates should be levied.

Mr Lowman continued: “The concept behind business rates supplements is flawed because it assumes that investments will automatically benefit businesses. The reality is that in many places businesses will be forced to fund projects that have no benefit to them.

“Business rates supplements are particularly unwelcome given the truly voluntary and participatory options already available to Councils. In particular ACS supports the use of Business Improvement Districts, which can bring together businesses to fund targeted local improvements.”

ACS will be making its case for assistance for retailers to Government and Parliament in the run up to the Budget in March.

Mr Lowman concluded: “ACS is calling on Government to take sweeping and decisive action to address the burden of business rates. In addition to abandoning business rates supplements we also recommend a halt on the planned 5% increase in April 2009 and the implementation of the 2010 business rates revaluation. ”