Around 15,000 businesses in Greater Manchester could see their rates cut by 30% or more, as part of a £1billion government support fund.
The scheme, which went live yesterday, is part of the Government’s long-term economic plan to help struggling shops, pubs and high streets across the country ‘build a stronger economy’.
Secretary of State for Communities and Local Government, Eric Pickles, announced the plan would be the biggest package of business rate support in over 20 years.
Mr Pickles said: “A key part of the Government’s long-term economic plan is to back business with lower taxes.
“Small shops are the lifeblood of local economies, and today’s changes will mean a massive boost to our town centres – helping to create more jobs and securing a better future for our children.
“A whole string of changes to business rates kick in today bringing new support to local shops, pubs and firms.”
Pickles said that in some cases shopkeepers could see their bills cut by a third extra or even more, which is worth thousands of pounds in tax breaks.
He added: “Together with our sensible changes to planning rules and action to tackle unfair parking practices, we are helping local communities secure the future of their high streets.”
Estimates published today reveal there are over 3,290 premises in Manchester eligible for the new retail discount and a further 2,320 in Stockport, 2,000 in Salford, 1,430 in Trafford, 1,270 in Bolton, 1,260 in Wigan, 1,070 in Bury, 1,030 in Oldham, 960 in Tameside and 800 in Rochdale.
The plan is expected to give a typical small shop, pub or restaurant with a rateable value of £10,000, savings of 30% extra or more when compared to last year’s business rate bill.
In addition to the new business rate discounts, specially targeted to support small shops, all businesses can now choose to spread their bill payments over 12 monthly instalments.
This is instead of paying over ten months, after rules were changed to give businesses greater control over their cash flow.
Richard Gregg, Regional Chairman of the Federation of Small Businesses Manchester and North Cheshire said: “Action from the Chancellor on business rates addressed some of the key concerns of FSB members.
“Too many businesses suffer from yearly price rises so capping the increases in business rates is a welcome measure.
“Equally welcome, was the news that the doubling of small business rate relief is to be extended, around 300,000 firms relying on 100% rates relief.”
Mr Gregg said relaxing business rates for firms that want to expand and incentivising new businesses into empty properties on the high street will boost retail and town centres.
He added that retailers on struggling high streets will be especially heartened by the additional £1,000 relief.
The new reform on business rates payment options means a business with a rateable value of £20,000, making payments over 12 months instead of ten, would have lower monthly payments by over £160.
In addition, a new Employment Allowance takes effect which will mean 450,000 small businesses no longer have to pay employers national insurance contributions.
The Government has also introduced changes to planning rules to get empty and redundant buildings back into productive use, and brought forward proposals to scrap unfair parking enforcement practices.
Image courtesy of Jerzy Kociatkiewicz, with thanks.
