Measure
The Chancellor announced two measures on business rates in the Autumn statement. The first is a continued freeze of the small business multiplier for a fourth year, at 49.9p. However, the standard multiplier will be uprated by September’s Consumer Prices Index (CPI) to 54.6p.
The Chancellor also announced an extension of the retail, leisure and hospitality (RHL) business rates relief for a further year, from April 2024.
Small businesses with a rateable value of less than £50,999 will benefit from the freeze in the small business multiplier.
The government estimates that 230,000 retail, leisure and hospitality businesses will receive support from the relief, up to a cash cap of £110,000 per business.
The small business multiplier will continue to be frozen to 31 March 2025. The RHL scheme, which was due to finish at start of April 2024, will now continue until the start of April 2025.
There is no doubt that an extension of the RHL relief for another year will be a benefit to many small and independent businesses across the sector. Given that the relief is capped per business, it seems the government is targeting support towards small, local businesses such as shops, restaurants, cafés, and leisure outlets to maintain and develop high street communities.
Where a small business occupies a property with a rateable value of, say, £50,000, their tax rate will remain at £24,950. However, for retail, hospitality or leisure businesses, they will continue to receive a 75% relief, resulting in a saving of £18,713 and only paying £6,238 for the next rate year.