I cant say that I understand the Treasury making a decision to increase business rates. Especially at these enormous amounts.
Most businesses that will be adversely affected will surely pass most, if not all the costs onto their customers - who will then shop around (excuse the pun) potentially on the internet and look for goods cheaper.
This could lead to the business closing or operating on line out of a garage (dependant on business type) and another empty shop and yet another charity shop opening up having obtained a business rate reduction.
It does not seem a great way to get the local economy up and running. Especially as those small shops employ one or two staff who live locally.
To my mind a reduction in business rates should have been on the cards. If shops charge more to their customers the customers will have to economise, public spending reduces, VAT returns reduce and we get in to the old cycle where taxes have to go up as an enforced way of bringing money into the governments coffers. No one wins in this situation.
Happy days - I am sure thy know what they are doing..
