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A new bill introduced today (Wednesday 29 March) will support
businesses by modernising the business rates system to
incentivise property improvements and support more frequent
revaluations.
The measures being put forward review and reform business rates
in England, making them fairer and more responsive to changes in
the market.
The Non-Domestic Rating Bill will introduce more frequent
valuations, to take place every three years instead of the
current five, meaning those with falling values will see their
bills drop sooner.
It will also provide new business rates improvement relief, so
businesses making qualifying building improvements will not face
higher business rates bills for 12 months. This will make it
easier for businesses to invest with new reliefs for property
improvements, providing tax breaks for businesses who are
extending or upgrading their property.
Local Government Minister, said:
The introduction of our Non-Domestic Rating Bill seeks to deliver
the reforms announced during our Business Rates Review.
We are bringing the administration of the tax up to date, and
making the system more responsive to changes in the economy and
introducing new support to reduce barriers to business
investment.
This is another step in the right direction for making sure the
UK continues levelling up and supports businesses to grow and
flourish.
The bill will build on recent steps to cut business rates, with
£13.6 billion of support announced at the Autumn Statement, and
to redistribute the tax through the 2023 revaluation.
, Financial Secretary to
the Treasury, said:
I want businesses to know that the government is on their side.
Businesses have asked for changes to the business rates system
and we are acting, including with more frequent revaluations to
make the system fairer and more responsive.
And they come on top of £13.6 billion of business rates support
which resets the balance between bricks and clicks businesses,
helping our much-loved high streets and communities.
Melanie Leech, Chief Executive at the British Property
Federation, said:
These measures are a welcome step towards creating a business
rates system that is fair for all. The British Property
Federation has long-called for more frequent revaluations to help
ensure the level of rates payable reflects current market
conditions and structural changes in the economy.
A move from five to three yearly revaluations is a marked
improvement, and we would like to see Government continuing to
strive towards even more frequent revaluations in due course. The
introduction of a business rates improvement relief is also a
welcome boost as property owners and occupiers work together to
decarbonise and futureproof older buildings and support the UK’s
journey to net-zero.
Helen Dickinson OBE, Chief Executive of the British Retail
Consortium, said:
Retailers welcome moving to three-yearly revaluations, meaning
business rate bills will reflect underlying market conditions
more quickly. Changes to valuation appeals processes and more
transparency are also vital and the improvement relief will
encourage more retailers to invest in their properties. These are
all positive changes, but the job is not done. Government’s focus
must remain on reducing the rates burden, enabling more local
communities across the country to thrive.
The Non-Domestic Rating Bill has been informed by the Business
Rates Review, which ran from July 2020 to October 2021. The
consultation responses can be viewed online here.
The Bill has been introduced in parliament and will be debated in
due course.
Non-Domestic Rating Bill
Explanatory Notes
