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Southport and  Mersey Reporter -  Your free online newspaper service covering the Merseyside region - (Greater Liverpool).
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Issue:- 12 December 2013

Autumn Statement keeps North West business costs down and helps high street

THE government has unveiled changes to the business rates system which will cut taxes, supporting the North West's small businesses and high streets.

Businesses in 232,000 premises in the North West will all see benefits from the government's actions, and 102,000 premises in the North West will see their business rates bill frozen or falling. Measures include:

A 2% cap on the RPI increase to business rates. This will benefit 174,000 business premises across the North West – the remaining 56,000 properties will pay no rates at all

A £1,000 business rates discount; available for 2 years to shops, pubs and restaurants worth less than £50,000l; will benefit 46,000 properties in the North West

Extending the Small Business Rates Relief for another year will provide continued support to 81,000 small businesses; 56,000 of which will pay no business rates at all

The cap on business rates, £1,000 discount for retail properties and extension of the Small Business Rates Relief come alongside other government action to cut the costs of rates for business, including:

A reoccupation relief which will provide a 50% business rates discount for 18 months, on retail properties that have been vacant for a year or more

Relaxing the rules around the Small Business Rates Relief so that small businesses wishing to grow and take on a second property will be able to receive the relief for a year after expanding

Cutting the tax on employment for the North West...

Businesses and young people in the North West will also benefit from government action to cut employer's National Insurance Contributions for all under 21s on earnings up to £42,000. This means:-

Employer National Insurance Contribution bills for 174,000 under 21s in the North West will be wiped out from April 2015.

38,000 employers in the North West will benefit.

£55m worth of savings for North West employers in the first year alone.

The North West will also benefit from actions already taken to cut employer National Insurance Contributions in this Parliament:

Raising the threshold at which employer National Insurance Contribution becomes payable, lifting 140,000 people in the North West out of employer contributions altogether.

Introducing the £2,000 Employment Allowance for up to 137,000 businesses in the North West.

For more on the package to cut employer National Insurance Contributions, click on here.

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