The Chancellor Philip Hammond has announced a number of measures to help those businesses that will be most affected by the change to Business Rates.
- No business losing small business rate relief will see their bill increase next year by more than £50 a month.
- £435m for firms affected by increases in business rates, including £300m hardship fund for worst hit.
- Pubs with Rateable Value of less than £100,000 to get a £1,000 discount on rates they pay.
The news will come as some relief to those that have been lobbying against the proposed increases however the measures proposed are short term solutions, which simply push the issues further down the road.
The big problem for most is the level of rates being paid by small to medium sized businesses, compared with the larger internet retailers that benefit from lower levels on out of town warehouses, which affects their ability to compete with prices.
This news follows the complete reassessment of UK Business Rates which was announced last year.
From the 1st April 2017 you need to know:
- No rates will be payable on properties with a Rateable Value up to £12,000.
- Tapered relief will be offered on properties with a Rateable Value between £12,001-£15,000.
- The small business multiplier will apply to properties with a Rateable Value of up to £51,000
The Business Rates standard multiplier from April 2017 will be 47.9p in the pound. The small business multiplier will be 46.6p in the pound.
If you need advice on your Business Rates then please do not hesitate to contact us on 01604 620616.