House prices/rents versus business rates

macaque_2

Loughton_Monkey wrote: »

Well I'm sure renters would all enjoy their rents halved. Owners would like their interest rates halved. And while we're at it, lets halve the cost of fuel, food, energy, insurance, taxation, cigars, alcohol, software, and those little yellow post-it notes....

... but it ain't going to happen. Only a communist country could do this. I do not want to live in a communist country.

I get the feeling that you have sort of got the point now. I am not suggesting that rents will halve. All I am saying is that the UK's competitive position suffers if housing costs are out of kilter with other developed economies. In the end this is a self correcting effect however since a poorer nation will by default pay less rent. High taxes have the same effect on the economy (unless the tax money is used efficiently) as do excessive energy prices for steel companies. Funnily enough, even Gordon Brown recognised this hazard when Labour came to power but the political allure of another housing bubble proved to big a temptation to resist.

antrobus

macaque wrote: »

..Funnily enough, even Gordon Brown recognised this hazard when Labour came to power but the political allure of another housing bubble proved to big a temptation to resist.

"I will not allow house prices to get out of control and put at risk the sustainability of the future."

The old ones are always the best.

grizzly1911

leveller2911 wrote: »

Just my penneth worth. My workshop (B1 use) is around 1050sq feet for which I pay £6 per sq foot so £6,300-00 rent. Rateable value is £3,500-00 and we did get 50% relief so that was a cost of £1,750-00 per year. For the last few years we have 100% relief so nothing to currently pay.

The money saved I use for buying new machinery so soon the workshop will conform to all H&S regs and I would like to employ an apprentice or two. My problem with business rates is the fact that we receive nothing for them.My council tax on my house pays for some services but for paying business rates we don't even get our rubbish cleared. I know a smallish company down the road whos rates were £50k a year employing no more than 15 people but rates were set on workshop size etc.

Business rates do stifle small business badly.Local to me the small Market town of 4,000 people the high street shops last no longer than 6 months partly due to business rates. A small shop of say 500 sq feet will still be paying £1,500 a year rates after SBRR so on top of rents,power,insurances etc its just too much and as such employment has suffered and less people visit the town due to lack of shops. Encourage small businesses and they will produce and employ staff so they in turn can pay their rent instead of relying on state handouts. Its not that difficult to sort out ,politicians make it difficult because none of them have owned/run a business.

Excessive council car park taxes have had the same effect in reducing footfall. A double edged attack