Changes to Business Rate – Spring Budget
Following a widely publicised debate surrounding the revaluation of business rates, which has seen some small businesses faced with dramatic hikes to their bill, it was expected that Chancellor Philip Hammond would address these concerns in his Spring Budget. He did not disappoint. In a welcome move for small business owners negatively affected by the forthcoming changes, Hammond revealed a series of measures designed to limit the impact.
While Hammond said it was not possible to abolish business rates altogether due to them raising a vital £25bn a year for the Treasury, he unveiled a three point plan of attack backed by a £435m package to help those businesses facing the biggest increases.
- Those businesses losing Small Business Rate Relief will benefit from an additional cap. This ensures their rates will increase by no more than £50 a month.
- Recognising the role that pubs play within communities, it was announced that 90% of all pubs (those with a rateable value of less than £100,000) will receive a £1,000 discount on their business rates bill.
- A £300m fund will be allocated to local councils in order to provide relief to businesses affected by an increase in their business rates. Councils will be able to allocate this money on a discretionary basis to individual businesses hardest hit by an increase in their rates.
Written on Wednesday 08/03/2017