Budget Report: Serviced office provider Basepoint comments on rates relief
Brian Andrews, executive director of UK serviced office provider Basepoint Centres Ltd, commented on the Small Business Rate Relief (SBRR) as announced in Alistair DarlingΓÇÖs Budget Report yesterday.
“We recently changed our all inclusive license fee to one excluding business rates, having realised that the majority of our customers could be eligible to take advantage of the Government’s Small Business Rate Relief Scheme,” he says, “so we are delighted that the Budget has given our licensees a fantastic boost to their finances by allowing further reductions in costs.”
As clarified by the Business Centre Association (BCA), the Small Business Rate Relief is different to Empty Property Rate Relief.
The level of SBRR will be temporarily increased so that eligible ratepayers receive 100% relief on properties with rateable values of up to ┬ú6,000, whereas previously the relief was at 50%. The new levels of relief will be available for the 12 months from 1 October 2010 to 30 September 2011.
The Government stated that they would meet the additional costs arising from the change in the levels in the scheme.
“In essence, over 90% of Basepoint licensees who were benefitting with Small Business Rate Relief will now benefit further,” continues Brian Andrews, “some with no business rates payable from October as the relief potential moves from 50% to 100%.”
“We envisage a wave of new licensees moving away from traditional business centres with inclusive rent schemes, and into those with rate exclusive schemes. It’s a turning point for some of the bigger players in the sector with inclusive rent schemes; they will now have to rethink their whole rental strategy or face losing out to those with the foresight to be ready for the changes, giving the benefit back to small businesses.”
Basepoint Centres Ltd, who are affiliated with the BCA, are a UK-based serviced office provider, targeting start-ups and small businesses. They currently have 26 business centre locations throughout the south of England and West Midlands.