Small companies across Hampshire, West Sussex and Dorset have been given a boost by the announcement by George Osborne in today’s Autumn Budget Statement that the Small Business Rates Relief scheme will be extended for a further six months.
The current one-year holiday on business rates which was due to expire in October 2012 will be extended until April 2013 at an estimated cost to the Treasury of £210m
Following a record 5.6% September RPI figure which will be used to calculate the annual increase in Business Rates from April 2012, to help all businesses, including larger ones, 60% of the increase in their rates bills will be able to be deferred for the two following years.
The Government have announced that 500,000 commercial property occupiers will benefit from the tax break, with 330,000 not paying any business rates in 2012-13. The rates holiday offers 100% relief on business rates up to £6,000, with progressively smaller rebates on amounts up to a cap of £12,000.
‘The Chancellor is facing growing criticism about his austerity plans and how they could affect the future growth of the economy and is trying to ensure that small businesses are not put under any further financial pressure.’
Further measures announced today to assist smaller firms in the South are a national loan guarantee scheme which it is claimed could cut borrowing costs for by up to 20 per cent. In reality this may only equate to a 1% discount but the bigger issue for companies may be being able to find the increasingly high levels of equity/deposits required by the major lenders.
The coalition will underwrite bank loans to firms with an annual turnover of less than £50m. With the scheme starting in January 2012, it is hoped to give an immediate boost to the economy.
“Many businesses find increasing property overheads prevent plans for growth and any assistance is welcome, however more radical steps such as business relocation can produce a much bigger saving than a rates holiday or discounted loan”
