BT has condemned new business rates as “excessive”, warning they will push up the cost of broadband services. The charges, effective from 1 April 2017, will increase BT's annual valuation fourfold from £165m to £743m.
“We are extremely disappointed by the new rateable values, which are clearly excessive,” BT said. The telecoms giant warned that the increase would likely lead to higher prices for consumers and businesses, and could negatively impact future investment in the network.
Virgin Media chief executive Tom Mockridge echoed the concern, stating: “The Chancellor Philip Hammond is choosing to side-step responsibility for a huge increase in infrastructure taxes, at the very moment after the Brexit vote the UK needs to maximise investment into its digital fibre network.”
BT said it will challenge the Valuation Office Agency’s (VOA) “method and assumptions”. The company added: “The Government has made it clear that it wants companies such as BT to invest heavily in the UK. We have stepped up to that challenge but we need a more joined up and logical approach from the public sector.”
However, the proposed rates will be welcomed by many small businesses, which will see a drop in their charges due to overpayment in recent years based on outdated 2008 valuations, according to the Federation of Small Businesses. Chairman Mike Cherry noted that transitional relief plans announced by the government will help reduce the impact for those facing large increases.
Local Government Minister Marcus Jones said: “Local firms also need to be confident that the rates they pay are accurate and fair… nearly three quarters of companies will see no change, or even a fall, in their bills – including 600,000 who from next April will have their bills cut altogether.”
