According to a recent survey, many firms are worried about the forthcoming revaluation of business rates, which are due to be announced in October and will come into force from April 2017.

Businesses rates are typically revalued every five years but this revaluation was postponed for two years. While the delay is said to have cost many businesses dear, some firms are now saying they do not know whether the new rates will be far.

For one thing, under changes announced in this year’s Budget, the administration of business rates will be simplified and, from 2020, the uprating mechanism will be switched from the Retail Price Index (RPI) to the Consumer Price Index (CPI)

Of those surveyed, more than 50 per cent were concerned about the forthcoming adjustment while almost half said they did not know whether they could benefit from Business Rates Supplements.

In addition, 42 per cent said they were unsure whether devolving greater control over business rates to local government would have a positive impact on their business and 40 per cent did not know whether the rate they currently pay was “fair”.

A spokesman for the London Chambers of Commerce (LCC), where business owners are particularly concerned about the revaluation, said that the results suggest that there is not enough clarity around the subject.

He added that businesses play an important role in funding infrastructure that benefits their locality. Therefore, the Treasury should outline how reforms will work in London given the Business Rates Supplement that is already in place.

Business leaders are urging the Government to implement the changes transparently and in consultation with local businesses who are paying out a big chunk of their profits on the tax.

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