Credit Managers Can Offer Relief From £8.2bn Business Rates Bill

4th April 2o18.

The business rates bill hitting London firms will rise to £8.2bn today, raising the prospect that firms could move out of central parts of the capital due to high property costs.

According to new figures from the Federation of Small Businesses (FSB), both the national living wage and business rates increase across the UK today, and London now pays 33.1 percent of the country’s total business rates bill. This is of great concern for small and medium-sized businesses who are digging in their heels to stay in the capital despite the slowdown in spending and rising fees for brick and mortar stores. If the rates continue to skyrocket many SMEs will be pushed out of London altogether, significantly impairing the small business culture that makes up the UK economy.

Small and medium-sized businesses are the lifeblood of the economy and it is important they are protected by the government and by their professional neighbours. At the Credit Protection Association, we understand the significance of small businesses and have used our expertise to aid many of our small business members. Our debt recovery services have freed up cash flow and opened up opportunities that have not only kept them on the London high street but built them up stronger than ever.

According to a separate survey from the FSB, 60 percent of Zone 1 firms fear they will not be able to afford their current premises in five years.

Sue Terpilowski, London policy chair at the FSB, said there should be a major review of the business rates system.

“Many small businesses in London will see their business rates increase upwards of 20 percent on 1 April,” she said.

“The high cost of doing business is putting additional pressure on wages and inflation for London businesses. The cost of employing staff generally and the heavy burden of cripplingly high commercial space costs are having additional negative impacts on small businesses.”

The capital is not an easy place to do business, the costs and fees are high and the competition is tough. London may not be easy but it remains one of the busiest and most important places to do business, and small and medium-sized enterprises should have the opportunity to trade. The skyrocketing business rates can be counteracted and a stable financial future can be achieved.

The economy downturns and it upswings, and businesses need to be prepared for either. Whether the business is small, big or somewhere in the middle, it is important to have the financial capacities to handle whatever the economy, the weather or the government throws you.

At the Credit Protection Association, our debt recovery services free up cash flow for our members, affording them the opportunity to expand their business or merely stick around in London for a little longer.