The Chancellor announced in today’s Autumn Statement a package of business rate measures:
- The Retail Price Index increase in 2014/15 will be capped at 2% instead of 3.2%. This results in a provisional small business/non-domestic multiplier for 2014/15 of 47.1p. The Secretary of State has estimated that the supplement to fund small business rate relief should be 1.1p for 2014/15. The provisional non-domestic multiplier will therefore be 48.2p in 2014/15.
- The doubling of the small business rate relief SBRR will be extended for a further 12 months, until 1st March 2015.
- Ratepayers receiving small business rate relief that take on an additional property, which would currently disqualify receiving relief, will continue to receive their existing relief for 12 months.
- A discount of £1,000 for shops, pubs and restaurants with a rateable value below £50,000 for 2 years up to the state aid limits, from 1st April 2014.
- A 50% business rates relief for 18 months – between 1st April 2014 and 31st March 2016 – for businesses that move into retail premises that have been empty for a year or more.
- Ratepayers will be allowed to elect to pay bills over 12 instalments instead of 10.
- 95% of the backlog in business rates appeals as at September 2013, will be cleared before July 2015.
“These plans appear to be a response to intense lobbying by the retail sector in particular, but the benefits are likely to be marginal”, says Howard Elliott, Head of bdt’ Rating department.
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5th December 2013