Miliband’s meddling ‘could cause rates chaos’

Ed Miliband’s plans to freeze business rates if he gets into power would be costly and cause confusion, according to our head of rating David Cureton.

In his keynote speech at the Labour Party conference in Brighton, Mr Miliband pledged to freeze rates bills on properties with a rateable value of less than £50,000 for the rate years 2015/16 and 2016/17 if he wins the next election.

The £800 million measure would help 1.5 million small firms and would be paid for by a reversal in the coalition Government’s decision to cut Corporation Tax from 21% to 20%, said the Labour leader.

However, David Cureton said an immediate rating revaluation would have a far greater impact on small businesses. “If Mr Miliband’s proposals are carried out I believe this will cause more confusion and be costly. It is generally thought that the next election will be in May 2015, but the rates bill will have been sent out in March with payments commencing in April.

“What is needed is an immediate rating revaluation of all commercial properties, with effect from 1 April 2015. This would have a far greater positive impact for struggling firms – especially in the hard hit retail sector. It would iron out the anomalies with the rating assessments, bringing them into line with the rents being paid now as opposed to where rents were in 2008 at the height of the boom,” he said.

“The calls for the revaluation in 2015 to not be cancelled has fallen on deaf ears in Westminster despite recent comments from high profile figures including Mary Portas, Philip Green and, more recently, Bill Grimsey,” added Mr Cureton.