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New ICAEW survey calls for changes to ‘inflexible business rates’

A survey by the Institute of Chartered Accountants in England and Wales (ICAEW) members working in businesses across every economic sector and UK region found that 62% of respondents said a reduction in business rates would help boost the recovery of the UK economy.

A reduction in business rates and financial support on a sectoral basis are the most effective ways in which the UK government can help the high street and boost the economy, an ICAEW survey of chartered accountants has found.

Iain Wright, ICAEW’s Director of Business and Industrial Strategy, said;

“Some struggling companies could fail when faced with inflexible business rates bills. Reducing the business rates multiplier would bring down the cost of this charge, and therefore lessen the burden on companies at this critical time.”

Conducted in mid-October the survey also found that:

  • 76% of respondents’ businesses had accessed a coronavirus loan or support
  • 63% had furloughed staff
  • 48% had deferred VAT payments
  • 62% said that business was down
  • 31% expected to make redundancies over the next six months
  • 31% of survey respondents said their businesses will need government support over the next six months, with 71% of those needing assistance not confident that the support on offer would allow them to continue trading for the next 12 months
  • 51% of respondents said they thought a reduction in employers’ National Insurance contributions would be helpful
  • 37% of respondents backed further reductions in VAT rates

To read the official ICAEW announcement please click here.

Hopefully, this has been useful, but if you feel like you need a little extra support or guidance please do pick up the phone and have a chat with our team. Call us on 01993 225030 or email hello@modus-accountants.co.uk.