Business rates income is forecast to rise from £22.4bn in 2015-16 to £23.8bn by 2018, according to figures published by the Department for Communities and Local Government (DCLG).
As many as one in three convenience stores are expected to face increases this April, while many internet distribution warehouses such as Amazon are set to see rate bills fall as a result of the revaluation, according to research from business rent and rates specialists CVS.
The DCLG has predicted that net business rates income will rise to £23.5bn in 2017 before eventually reaching the height of £23.8bn the year after.
The Association of Convenience Stores (ACS) has called on the Chancellor to make business rates fairer for convenience stores. ACS chief executive James Lowman said: “While the current business rates system provides relief for some of the smallest stores, one in three convenience store retailers are set to see their rates increase as a result of the revaluation. We do not believe the current system is fair, and have called on the chancellor to look at whether the rates bills for internet distribution warehouses are appropriate when compared to their high street counterparts.
“The current business rates system also penalises rate-payers that want to invest in their store to improve their offering for customers. We want to see a rates system that incentivises investment and allows stores to offset investments against their rates bills.”
DCLG figures also show that the Retail Rate Relief introduced at £1,000 per store in 2014 and then increased to £1,500 per store in 2015 delivered over £492m of rate relief for properties with a rateable value of less than £50,000, before being scrapped last year.
The ACS is calling for rateable value threshold for Rural Rate Relief to be extended to support petrol forecourt sites while requesting the government brings forward the change in the annual indexation of the business rates increase from RPI to CPI to 2018 instead of 2020, to deliver annual rate reductions of £370m.
The organisation has also asked the government to review its turnover-based model for calculating business rates for forecourts and ATMs, and review the rates bills of internet distribution warehouses compared to their high street counterparts.