Businesses that feared they were being taken “for granted” by ministers over a planned rise in business rates from April have been given some respite after part of the increase was deferred.
Chancellor George Osborne announced in his Autumn Statement that 60 per cent of the 5.6 per cent increase in business rates would not come in until 2014 and 2015, rather than 2012 and 2013.
Sainsbury’s and Morrisons both said if the full increase in business rates had been enforced their bill would have risen by £10 million.
Osborne also said the small business rate relief holiday would be extended for a further six months from 1 October, 2012 to April, 2013.
The British Retail Consortium (BRC) said: "Despite the option to postpone part of next year's rise, businesses are still faced with the prospect of big increases in rates costs.
“The option to postpone 60 per cent of April's increase will be a modest help but the bills will still have to be paid in the end. Offering a delay stops well short of implementing a significantly lower increase.
"The Chancellor should have taken the opportunity to switch to a lower CPI-based rise, as he has done for pensions and benefits, and the deferral scheme needs to be simple and workable unlike the last time this was tried."
The BRC said the small business rate relief was “clearly good news for some small retailers” but that it would not help the majority of businesses becaue a qualifying rateable value below £12,000 was a comparatively rare thing in South East England.
Osborne also revealed the planned January fuel duty rise of 3 per cent would be deferred to 1 August and the second fuel duty rise planned for August would be scrapped.
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