- Local authorities have started sending bills to businesses.
- Many in retail will see a tax cut and the sector is set to
see its overall bills paid fall by 20%.
- This is thanks to the government’s £13.6 billion support
package announced at the Autumn Statement.
Retailers in England are set to see their business rates bills
drop by a fifth in April.
With local authorities sending out bills this month for the
coming tax year, this will come as a welcome relief for the shops
that make up the backbone of England’s cities, towns and
villages.
Rising global prices have been made worse by Putin’s brutal war
in Ukraine, with high street retailers feeling the pressures
caused by inflation.
The £13.6 billion package announced in Autumn by the Chancellor
will help businesses just as
new business rates bills come in from April.
, Financial Secretary to
the Treasury, said:
“The firms that make up our high streets are facing
challenging times and I want them to know the government is on
their side. One of the ways we can help them is by making it
easier – and cheaper – to do business.
“This package does just that. It protects all from rising
inflation, partly caused by Putin's brutal war in Ukraine, it
means a tax cut for many as shops will pay one fifth less in
rates and it reflects the modern market by finally addressing the
balance between online and in store sales."
The Autumn Statement’s business rates package and this year's
revaluation of business rates means that all regions in England
will see a decrease in average bills and levels out the tax
burden between online and bricks and mortar sales, helping high
streets across England.
Total business rates paid by retail is predicted to fall by 20%,
whilst large distribution warehouses will see a 27% increase
reflecting the growth in the online sales sector.
The £13.6 billion government package includes:
- Extending and increasing relief for retail, hospitality and
leisure, from 50% to 75% in 2023-24. This will help around
230,000 properties and is worth almost £2.1 billion. This is the
most generous single-year business rates relief in over 30 years,
outside of Covid-19 support.
- Protection for small businesses who lose eligibility for
either Small Business or Rural Rate Relief due to the revaluation
through a new Supporting Small Business scheme worth over £500
million.
- Freezing the business rates multiplier for another year to
protect all business ratepayers from rising inflation, worth £9.3
billion over the next 5 years
- Reforming Transitional Relief so for the 300,000 businesses
seeing lower bills as a result of the revaluation, the government
will make sure they benefit from that decrease in full straight
away, by abolishing downwards transitional reliefs caps. The
government also announced a £1.6 billion scheme to cap bill
increases for businesses who will see higher bills as a result of
the revaluation.
Eighty per cent of retail, hospitality and leisure (RHL)
businesses will see their bills either decrease or stay the same
in the next year. This amounts to over 350,000 retail properties.
As a result of the Autumn Statement’s business rates package,
total bills in England – across all rateable properties and not
just those which are RHL - will not rise by more than 1%. Without
intervention this figure would be 20%.
The government also remains committed to delivering the measures
announced following the 2020 Business Rates Review. This includes
more frequent revaluations, which represents fundamental reform
of the system, and will ensure that liabilities are more
responsive to changing conditions.
It also includes a new Improvement Relief, to encourage
investment in commercial properties.
ENDS
Notes to Editors
Read the Autumn Statement business rates factsheet for more
information: https://www.gov.uk/government/publications/autumn-statement-2022-business-rates-factsheet/autumn-statement-2022-business-rates-factsheet
