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ANGRY: Steve Poole is unhappy that his business rates have gone up following improvement work.

A BUSINESSMAN has been forced to make staff cuts after being hit by a huge tax hike following compulsory improvements to his site.

Steve Poole, who runs Lifestyles UK Ltd in Upton Warren, has seen his monthly business tax bill rise from £50 to £410 after he up-graded the building where his staff work and installed toilets.

According to Mr Poole, he was put under pressure by Wychavon District Council's health and safety officers to make £50,000 worth of changes, but was not told that his tax would rise so much following a reassessment.

Now, Mr Poole is apparently facing the possibility of having to make one of his five staff redundant to cope with the extra costs. The business makes poultry housing, dog kennels and other animal enclosures.

"We got planning permission after we were advised to make the changes. I accept that the work needed doing, but don't understand why the business tax has risen by so much. I am angry that we were not told this could happen. There is nothing different about the site, it's just newer," said Mr Poole.

"I will now have to make one of the men redundant. It was common sense that the work was done, but for the tax to rise by 400 per cent is unbelievable."

Simon Hodges, senior billing officer at Wychavon District Council, said: "The level of business rates payable on a property is dependent on the rateable value set by the Valuation Office, part of Her Majesty's Revenue and Customs, and the rate in the pound is set by central government. The council acts for the government by collecting business rates on its behalf. This money is paid into a central fund, which is then re-distributed to councils through the government grant using formulas set centrally.

"We have spoken to Mr Poole and explained this and advised him to contact the Valuation Office Agency, who will be able to explain how they have calculated his new rateable value and advise him of his rights of appeal."

10:23am Tuesday 20th May 2008

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