London businesses to be hit with 2% levy for Crossrail development
Boris Johnson, the Mayor of London, has today confirmed that London businesses will pay a levy of 2% from April 2010 to assist with the cost of the £16 billion Crossrail development. However, commercial premises with a rateable value of less than £55,000 will be exempt from the levy taking out around 80% of small and medium-sized businesses in the area.
It is thought that the two pence in the pound levy will raise around £4.1 billion to support the project which will be beneficial to the whole London area and the business arena. The business rate levy will be in place for 31 years although it has been structured in such a way so that 70% of the cost is covered by businesses in the central area of London, those which would benefit most from the new rail operation.
While many people have criticised Boris Johnson for introducing this business rate levy in the midst of a recession it perfectly illustrates how the city of London is in many ways self financing and a totally different economy to that of the rest of the UK. The adjustment which saw the £50,000 cut-off point increased to £55,000 has apparently taken a further 4,000 companies out of the levy payment system.
Share this..
Related stories
Big Tax Rises Expected Later In The Year
While the Chancellor Alistair Darling took the brave and well received step of tackling the disastrous abolishment of the 10p tax band, it seems that things may get a little worse in the second half of 2008. Many experts feel that the move, which cost £2.7 billion, will need to be funded by higher taxes in the later part of 2008 and 2009. So what is happening? Many observers feel that the go...
Read MoreUK government pledges to spend whatever it can to keep people in employment
As we approach the next general election it is no surprise to see Alistair Darling, the Chancellor of the Exchequer, suggest that the UK government will do everything within its means to keep people in jobs, no matter what the cost. Even though UK national debt has now topped £1 trillion and the annual budget deficit is set to top £175 billion this year it seems Alistair Darling is set to pull y...
Read MoreUK government reveals £60 million funding for north-east economy
In a desperate attempt to revitalise and stabilise the economy of the north-east of England the UK government has today revealed a £60 million taxpayer funded investment into businesses in the region. This comes only days after the closure of a Teeside steel works with the loss of 1700 jobs, a massive blow to a region which has been under pressure for some time. The £60 million being made ava...
Read MoreCan you control your own budget?
In these very difficult economic times it is vital that we all learn to control our budgets better and cut out waste where possible. While 90% of the UK public may believe they have control of their budgets if we are totally honest the vast majority of us waste money on a regular basis, money which can prove vital in these difficult times.
However, in no way shape or form should lux...
Vouchers and bonus points
More and more online businesses are now offering significant promotions, discounts, vouchers and bonus points to customers who frequent their websites. However, even though the vast majority of people in the UK are struggling to make ends meet it seems that many of us are happy to walk away from significant discounts and promotions because "they take too long". People seem to forget that the Inter...
Read More