ACS

ACS has welcomed the announcement by the Chancellor that the 5% increase in business rates that comes into force on 1st April will be spread over three years. This means an increase of 2% in 2009/10 and 3% over the following two years.

ACS Chief Executive James Lowman said: “Business rates are the third biggest cost for convenience stores, so this eleventh hour decision will provide some relief to local shops. We have pressed hard for support for small shops, and the issue was at the centre of our submission to the Chancellor in advance of his Budget, so it is pleasing that our efforts have helped to save several hundred pounds for the average convenience store and tens of millions of pounds for the sector as a whole.

“However, we remain concerned at the impending costs associated with the 2010 rate revaluation which will heap further costs on local shops, and the supplementary business rate which will give councils more powers to raise money from business rate payers. Today’s announcement should be the first step towards a fairer rates system for businesses.”