Queen's Speech December 2019 - Business rates

Business rates

“To support business, my government will...bring forward changes to business rates.”

• ●  The Government is committed to conducting a fundamental review of business rates.

• ●  The Government recognises the role of business rates as a source of local authority income and will consider input from the sector as part of the review of business rates. Further details on the review will be announced.

• ●  We are committed to increasing the retail discount from one-third to 50 per cent, extending that discount to cinemas and music venues, extending the duration of the local newspapers discount, and introducing an additional discount for pubs.

• ●  We will also progress legislation to bring forward the next business rates revaluation by one year from 2022 to 2021 and move business rates revaluations from a five-yearly cycle to a three-yearly cycle. This will allow the Government to press ahead with delivering an important reform that has been strongly welcomed by business.

• ●  More frequent revaluations will ensure that business rates bills are more up- to-date reflecting properties’ current rental values. Moving to three-yearly revaluation will make the system more responsive to changing economic conditions.

  Key Facts

• ●  Reforms and reliefs announced since Budget 2016 will reduce the burden of business rates by more than £13 billion over the next five years.

• ●  Reforms and reliefs include switching from RPI to CPI indexation, increasing the threshold for the standard multiplier to £51,000, and doubling the threshold for Small Business Rate Relief – meaning over 675,000 of the smallest businesses now pay no rates at all.

• ●  At Budget 2018 the Government announced a package of business rates support for high streets and town centres, providing one third off retailers’ business rate bills from April 2019, for properties with a rateable value below £51,000. This is available to a range of retail properties such as shops, restaurants, cafes and pubs, subject to State Aid and eligibility.