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Autumn Statement 2023 – Business Rates Bulletin

The ForeView team summarise the key business rates takeaways from today’s Autumn Statement.  

 

  • The 75% relief on qualifying retail hospitality and leisure premises has been extended for another 12 months to cover the 2024/25 rates year.  The cap of £110,000 per business is still applicable.
  • The small business rates multiplier (applies on Rateable Value’s below £51,000) has been frozen at 0.499 for 2024/25.
  • The standard multiplier (applies on RVs of £51,000+) will be uprated by September CPI to 54.6p. In the London Borough’s the multiplier will be even higher at £0.566 on RV’s above £75,000.

ForeView Comment:

The measures announced today is very welcome news for smaller businesses and independent retailers who were fearful of a significant hike in rates payable from April 2024. There was some expectation that the 75% relief might be cut to 50% or less. The fact the government has maintained the retail relief at 75% is in our view an acceptance that the Valuation Office didn’t go far enough in reducing Rateable Values across these sectors at the 2023 Revaluation. The average reduction in Rateable Value of 10% on retail premises is wholly inadequate and we are actively challenging levels of value with the Valuation Office across the sector for our clients.

These measures don’t offer any support to larger retailers or owners of vacant retail who have received limited support during the pandemic and in a market that continues to offer challenging conditions. With the standard rates multiplier set to rise to an unprecedented level from April, many businesses will see an increase of at least 6.4% in their rates liabilities which will add to the cost pressures for UK businesses.

 

If you wish to discuss any of the points raised above in more detail please do get in touch with us with our expert team

 

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