It was announced back in March that the Government will be granting tax reliefs for Manchester in order to help the city’s economy thrive and grow as the Northern Powerhouse. At the beginning of April, it was declared that businesses in the Greater Manchester regions would see business rates drop, with the exception of city centre companies. Over the past few months, the Government has been reviewing business rates across the country in order to reflect the changes to property prices, as the last review was back in 2010.
A recent analysis of business rates and rents in Manchester claimed that companies that are located in the city centre will face an average rise of 4.36%. Covered in the Manchester Evening News, they also stated the exact changes that took place as of April in comparison to 2016, with the figures showing drops for the Greater Manchester boroughs:
Manchester is up 4.36 percent.
Bury: down 0.21 per cent
Oldham is down 0.97 percent.
Rochdale is down 1.56 percent.
Bolton: down 0.97 per cent
Salford: down 1.01 per cent
Trafford: down 1.44 per cent
Stockport is down 2.54 percent.
Tameside: down 0.71 per cent
Wigan: down 0.25 per cent
Northern Economic Growth
In an interview with Sajid Javid, the Communities Secretary, he mentioned how he believed that the North has a massive amount of economic potential. Over the last two years, foreign investment into the ‘Northern Powerhouse’ has more than doubled and it is only expected to continue to increase over the next few years as more investors take advantage of the potential in Manchester.
With that being said, the recent review of business rates offered a different view, as it mentioned that with fall of less than 1% in areas such as Wigan, Bolton and Bury, it won’t attract much investment. However, it was stated that any tax reduction is always welcome news for firms.
Mr Javid went on to say, “With 95,000 jobs created in the North in the past year alone and a £4bn investment boost through devolution deals, Northern councils and businesses will have the edge and can be a catalyst to drive economic growth for the rest of the country.
“The revaluation of business rates will help make sure they are accurate, and for Northern businesses, this will save them hundreds of millions of pounds a year.
“On top of this, more than 190,000 businesses in the North of England will, from this April, pay no business rates at all, a change we’re looking to make permanent.”
As you have read, the development of start-ups and established businesses is great news for job creation within the area. It is a move that will only further benefit Manchester and its economic growth.
Business Rates Removal
While it is positive to see the change in business rates, it could bring even better news for small businesses in Manchester. It was announced that as of April 2017, they were no longer expected to pay business rates, which is great news for budding entrepreneurs. According to Mr. Javid, it’s a move that the government hopes to make permanent, as it will mean that smaller businesses in the Greater Manchester area will be able to generate savings, which can then be used for business development costs. This ultimately will lead to more jobs, more businesses and a healthier Greater Manchester economy.
Will I Be Affected?
If you currently live, work, or reside in the Manchester area, you should notice some changes. As a commercial property scout, whilst prices will go in up in the city centre, you may see the prices drop in other areas of Greater Manchester as costs decrease. If you’re a start-up, then it is more than likely that you won’t see much change, but it would be worth doing some research to see if any benefits can be made from the new changes. The move is a highly positive one and one that should help the region grow from strength to strength.
If you’re a potential investor or if you would like to simply find out more about the recent business rate changes, please don’t hesitate to get in touch with our specialists. Roger Hannah & Co. has a wealth of experience in this sector, and we will be able to provide you with up-to-date advice for whatever region you are enquiring about.