South West businesses see rates freeze

70,000 business premises in the South West will see their business rates freeze or fall in new cap to business rates introduced in the Chancellor’s Autumn Statement today.

In the plans many businesses will continue to receive discounted rates from the Small business rates relief while business worth less than £50,000 will gain a £1,000 discount to their business rates.

The plans will also see 44,000 South west businesses pay no rates at all.

The cap is introduced  alongside a range of other measures designed to aid businesses and the high street. These measures include the introduction of reoccupation relief which will half business rates on properties which have been empty for more than a year.

There will also be a relaxing of the rules around the Small Business Rates Relief so that small businesses wishing to grow and take on a second property will also be able to receive the relief for a year after expanding

John Harvey Exeter city centre manager welcomed the news, he said: “I’m delighted with the Chancellor’s announcement that increases in business rates in England are to be capped at 2%, instead of being linked to inflation. The plans announced for ‘reoccupation relief’, halving business rates for businesses moving into vacant premises, are also most welcome.

“Although there are clear signs that the retail economy is beginning to move in the right direction, any moves by the government to ease the taxation burden for retailers, and the burden for independent retailers in particular, has to be welcomed.  I hope the measures announced by the Chancellor will help the pace of recovery for the retail sector to quicken in 2014.”

Also announced today are plans to wipe out National Insurance contributions (NIC) on employees under 21.

The government estimate that this will save £45m to south businesses in the first year alone as well as help reduce youth unemployment.

John Allan, National Chairman, Federation of Small Businesses, said: "Youth unemployment is a deep concern – particularly those out of work for more than 12 months. Evidence suggests the longer a young person is out of work or training, the harder it is for them to secure a job.

"This surprise tax cut is recognition that extra efforts are needed to get young people into employment. This should be coupled with improving the education system to ensure that all young people hold the functional and soft skills necessary to succeed in today's tough jobs market.

"We look forward to seeing further details to understand how small and micro businesses might benefit, including how this links with the Employment Allowance which comes into force next April."

Also announced was a  scrapping of the planned rise in fuel duty for next year, reducing the transit costs of many business in the region.