Bailiffs sent to 81,000 UK firms struggling to pay business rates
This is a very troubling article. Local authorities seem to have a stronger inclination to bring in the bailiffs than many other creditors (something which does us no favours reputationally). We are also locked into an increasing dependence on business rates at the same time that many of our key towns are becoming hollowed out by online shopping. In many cases business rates are cited as the culprit by the hard pressed independent traders we seek to promote. You couldn’t make it up….. This story tells us:
Bailiffs have been sent in to more than 81,000 companies that have struggled to pay business rates in the first year since a controversial overhaul of the system, according to new figures.
An investigation by ratings adviser Altus Group found that bailiffs were sent to 222 premises across England every day in 2017-18, with the power to enter properties, seize goods and subsequently sell them at auction in order to balance a business’s debts.
A freedom of information request by Altus came back with details on how many business premises were referred to bailiffs from 264 English councils covering 1.6 million properties of the 1.9 million liable for rates.
Using the data provided, it found that 6.53 per cent of firms liable for rates – nearly one in every 15 commercial properties with a bill – faced having their goods seized, up from 6 per cent the year before.
The rates revaluation in April 2017 left millions of businesses facing crippling tax hikes and forced many retailers and pubs out of business, as it saw properties revalued for the first time in seven years.
With councils strapped for cash due to austerity measures, and business rates making up an increasing chunk of income – along with the effect the rise in rates had on the running costs of businesses – the increase in instructions to bailiffs is of little surprise to experts.
Robert Hayton, head of UK business rates at Altus, said: “Councils are taking enforcement action much earlier since their finances became more aligned to business rates income.”