What Else Is Contributing to Increased Expenses for Small Businesses Besides Inflation and Business Rates?
Small and medium-sized businesses (SMEs) are feeling abandoned by the government as they grapple with business rate increases of an average of 14%, almost double the government’s stated figure. Charles-Henry Monchau, Chief Investment Officer at Bank Syz, has warned that inflation is driving up prices excessively higher than inflation demanded. This has had a knock-on effect for SME’s, who have had to pass on the costs to their customers just to keep their doors open.
Commercial property landlords are also feeling the pressure, as they consider the consequences of upping rent for their tenants in light of business rates, energy costs, and other factors. Many worry that increasing the rent to help cover these costs will drive away their tenants, or cause those businesses renting space from them to close entirely.
Inflation, interest rates, and taxes have progressively been upped, creating an unsustainable monetary pressure for many business rates payers. This has been felt across all industries and sectors, with the Valuation Office Agency (VOA) publishing figures in late 2022 showing that subsectors such as stadia and arenas could be facing a 51.5% increase, while film and TV studios have seen a 137.7% rise.
Anthony Hughes of RVA Surveyors, the independent business rates reduction specialist, has urged business rate payers to contact their local authority in order to check for unclaimed credits, which could mean the difference between insolvency and keeping their doors open. He also warns that it is now too late to submit cases challenging potential backdated overpayments for the previous rating list, and urges business rate payers to ensure their current and future business rates are accurate and fair.
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