Non-Domestic Rating
Bill
The purpose of the Bill is to:
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● Deliver manifesto commitments to review and create a
fairer, more accurate business rates system, meaning
businesses will have the confidence they are paying the right
tax.
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● Support businesses and employees to enhance
productivity and energy efficiency by making improvements to
their place of work.
The main benefits of the Bill would be:
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● Modernising the business rates system with more
frequent revaluations based on more accurate data, driving
growth by making rates bills more responsive to economic
changes.
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● Incentivising business ratepayers to invest in their
properties and decarbonise with new reliefs backed by the
Government.
The main elements of the Bill are:
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● Shortening the business rates revaluation cycle from
five to three years from 2023.
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● Improving the valuation accuracy and timeliness in a
shorter revaluation cycle through new duties on ratepayers,
with measures to support compliance.
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● Creating a power for the Valuation Office Agency to
provide ratepayers with information on the calculation of
their rateable value.
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● Tightening appeals against rates on the basis of
changing circumstances – building on our recent legislation
and £1.5 billion pandemic support fund by future-proofing
business rates against further shocks.
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● Introducing new 12-month rates relief on increases to
rateable value arising from improvements made to a property,
and a new 100 per cent rates relief for low- carbon heat
networks that are assessed as separate entities for business
rates.
Territorial extent and application
● The Bill will extend to England and Wales, and with the
exception of some minor provisions, apply to England only.
Key facts
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● The Government has provided over £17 billion worth of
additional rates relief since 2020. Changes announced at the
end of the review in October 2021 will reduce the burden of
business rates by a further £7 billion over the next five
years.
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● Introducing a new relief to support investment in
property improvements will enable occupying businesses to
invest in expanding their properties and making them work
better for customers and employees. This is part of a £750
million package to support investment, which includes
exemptions for green plant and machinery like solar panels
and 100 per cent relief for low-carbon heat networks.
