Measure
Further to the previously announced changes resulting from the 2021 review, the government announced several support measures for businesses in England, in advance of the new business rates bills (from 1 April 2023), reflecting changes in property values since the 2017 revaluation. The overall support package amounts to £13.6 billion over the next 5 years.
Multiplier Freeze – the business rates multipliers will be frozen in 2023/24 at 49.9p (small business) and 51.2p (standard), providing a saving worth over £9.3 billion.
Transitional Relief Scheme – the government is permanently removing the ‘downward caps’ on reduction in business rates bills as a result of the revaluation, such that businesses will benefit from the full decrease straight away. A £1.6 billion three-year transitional relief scheme for bills increases has also been announced, with upward caps of 5%, 15% and 30% for small, medium and large properties respectively in 2023/24.
Retail, Hospitality and Leisure Relief scheme – the rates relief for eligible businesses will increase from 50% to 75%, up to the current limit of £110,000 per business in 2023/24.
Small Business Scheme - Small businesses which will lose or see reductions to their small business rates relief will have their bill increases capped at £600 per year from 1 April 2023, providing over £500m in support.
Improvement Relief – In Autumn Budget 2021 the government stated that where qualifying improvements were made to a property, the occupier would not see an increase to their rates for 12 months. This relief was originally planned to apply from April 2023 but has been deferred to be introduced from April 2024 and will be available to 2028, when it will be reviewed.
Overall Package – all rate payers.
Multiplier Freeze – all rate payers.
Transitional Relief Scheme – rate payers who experience an increase of rateable values above the caps outlined above. All rate payers where rateable values are reduced.
Retail, Hospitality and Leisure Relief – qualifying businesses.
Small Business Scheme – Small businesses who will lose small business rate relief as a result of the 2023 revaluation.
Improvement Relief – all eligible ratepayers.
All measures will be effective from 1 April 2023, except for the improvement relief which will be effective from 1 April 2024.
The above measures will be a welcome support package for all business rate payers in a time when many are struggling to maintain a physical presence on our high streets.