The news of a potential £2bn rise in business rates for the 2024/25 tax year has been met with understandable concern by small businesses across the UK. This news comes at a time when small firms are already facing an uphill battle to stay afloat during the coronavirus pandemic.
However, it is important to remember that the rise in business rates is based on inflation and is not necessarily a bad thing. Inflation is a natural part of the economic cycle and is the result of a growing economy. This means that the increase in business rates is a sign that the economy is continuing to grow and that small businesses may benefit from an increase in consumer spending.
In addition, the rise in business rates could also provide an opportunity for small business owners to review their current business rates and make sure that they are getting the best deal. By shopping around and comparing rates, small businesses may be able to reduce their rates and save money in the long run.
Furthermore, small businesses should also take advantage of the various grants and schemes that are available to help them weather the storm. The government has put in place a range of measures to support small businesses, including the Coronavirus Business Interruption Loan Scheme (CBILS), the Bounce Back Loan Scheme (BBLS) and the Self-Employment Income Support Scheme (SEISS).
In addition, small businesses should also look at the various tax reliefs that are available to them. This includes the Business Rates Relief, which can provide a reduction in business rates for eligible businesses, and the Small Business Rate Relief, which can provide a reduction in business rates for businesses with a rateable value of less than £12,000.
Finally, it is important to remember that the increase in business rates is only forecast at this stage and may not come into effect. Therefore, it is important to remain positive and focus on the opportunities that the current situation can provide.
Small businesses should take this time to review their current business rates and take advantage of the various grants and schemes that are available to them. By doing this, they can ensure that they are getting the best deal and that they are well-prepared for the future.
In conclusion, the potential £2bn rise in business rates for the 2024/25 tax year is a cause for concern for small businesses. However, it is important to remember that this rise is based on inflation and is a sign of a growing economy. Furthermore, there are a range of measures that small businesses can take to ensure that they are getting the best deal and that they are well-prepared for the future.