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Labour vows to cut small firm business rates

by: IFAonline
  • 24/09/2013
  • 0
Labour vows to cut small firm business rates
Labour will reverse a planned rise in business rates for small firms if it wins the next election, party leader Ed Miliband is expected to say today.

Business rates across the UK are due to rise in April 2015, but Labour will ensure about 1.5m small businesses continued to pay at 2014 levels until at least 2016, the BBC reports.

The move would be paid for by reversing the last Budget’s additional cut in corporation tax – from 21% to 20% – for ‘big business’ in 2015.

Miliband is due to make the policy pledge in his keynote speech to his party’s annual conference in Brighton later on Tuesday.

Up to 1.5m businesses with properties worth an annual rent of £50,000 or less would benefit, with some firms saving as much as £2,000, Labour believes.

Labour says House of Commons Library figures show this ‘effective tax cut’ would cost £250m in 2015/16 and £540m in 2016/17.

The “effective tax rise” on larger firms as a result of of the move would affect about 80,000 businesses, it has estimated.

 

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