Twin brothers appeal over 'ridiculous' hikes in business rates (From Times Series)

Twin brothers appeal over 'ridiculous' hikes in business rates

2:30pm Friday 10th February 2012 in News By Natalie O'Neill

The owners of a garage in Hendon are planning to appeal against the “ridiculous” increases in their business rates.

Twin brothers Paul Lawrence Smith and Peter Smith, 56, have owned Auto Action in Station Road for 21 years, but are worried about its future after the rates began to shoot up three years ago.

Peter said: “It used to go up by about two per cent, which was more in line with inflation, but since 2009 there’s been an astronomical leap. It’s just ridiculous.”

In 2009, their business rates went up by ten per cent, in 2010 by 22.5 per cent and in 2011 by 11.5 per cent, meaning last year they paid a total of £2,005.

The pair will appeal against the Government’s rates in March.

Paul said: “We have to fight to try and get it down. It’s an unsustainable increase and we think it’s only reasonable it goes up 3.6 per cent, like our rent increases. If it continues, we won’t be able to run our business, especially in a recession.

“We can’t afford to replace staff so everyone else has to work harder, but we can’t keep doing that.”

A Government statement said: “The Government has taken real action to help small businesses with the cost of rates. At the Autumn Statement, we extended the small business rates relief holiday, benefitting around half a million businesses – with a third of a million not paying business rates at all.

“Businesses will also be able to defer 60 per cent of this year’s inflation increase, spreading the cost and giving them time to manage the impact on their cash flow.

"This comes in addition to other steps to help small business – including cuts to corporation tax, getting high-street banks to lend £76 billion this year and tackling red tape.”