Bigger Rate Burden for Transport
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From our Political Correspondent
THEprivate goods transport industry in England and Wales will probably have to find something like an extra £1 million in rates when revaluation eomes into force net year. A Government study of the revaluation proposals has revealed that the group known as "industry and freight transport" will have to shoulder a much larger share of the rate burden from 1963 onward— some 43.3';',;, extra to be precise.
This will mean that present total rate payments of some £80 million (140 million after tax relief) will spring to about £.114 million (£57 million after relief). No firm division of this category can be made, but it is known that goods transport businesses account for some 3% of the total value of property involved.
On a straight deduction, therefore, non-nationalized transport's share would seem to be due for a rise of about it million to a total of nearly £3-i million next year. Tax relief will, of course, make the net figure much less. but the benefit of this will not be felt until a year later.
All this might be on the optimistic side, too, since it assumes that the amount of actual revenue needed by local councils will not increase— a highly unlikely circumstance.
The Government's White Paper on the revaluation came as a shock to industry. Industry and goods transport have been paying rates on only half their 1956 values—a remnant of measures taken to beat the slump in the 1930s.
Very many concerns described as "industrial " run substantial transport of their own and will come under the 43.3% hammer on all fronts.
As can be seen. £1 million could be a highly conservative estimate as things turn out and the additional cost to fall on transport nationally may never be assessed.
But it is bound to make many firms sit up and take notice—and reach for their price and charges charts.