Business Rates are a bone of contention for all commercial property owners, they generate £25bn in tax revenues each year for the Government and for many years the industry has been calling for a total over overhaul. Much to the relief of some of the hardest-hit industries from the pandemic, the chancellor announced in his October 2021 budget that they will cut business rates in half for the retail, leisure, and hospitality sectors.
This represents a tax cut worth some £1.7bn, and when combined with Small Business Rates Relief, over 90% of all these businesses should see a discount of at least 50% in their rates bill. The relief will be capped at £110,000 per business.
In addition Mr Sunak announced that business rate re-evaluations will now take place once every three years, instead of once every five years, and that the government had cancelled next year’s increase in the rates multiplier.
Photo by Patrick Tomasso on Unsplash
