As we know the government’s revaluation for business rates will affect 1000’s of businesses across the country according to the British Retail Consortium (BRC). This will not only make it more difficult for existing business’ to make a profit and retain staff, but also have a significant impact on new business startups.
The BRC expects the upcoming changes due in 2017 outlined by George Osborne in autumn 2014 to affect 2 out of 3 high street shops!!! With a projected closure of up to 8,000 small businesses nationwide. This would in turn have a direct effect on unemployment with around 800,000 people then losing their job. The BRC call this hike in business rates as a “tax on jobs and growth”. They are sure the future of many high street shops will be in jeopardy of disappearing if the government’s upcoming increases go ahead. They are set to generate £26 billion in revenue for the government’s coffers so you can see why they are keen to implement them. However, the risk of there not being enough shops able to afford the increases may outweigh what the government expects to receive.