In a significant move to bolster the UK's small businesses and revitalise the high street, the government has announced a comprehensive £4.3 billion business rates support package spread over the next five years. This package represents a mix of relief and adjustments, signalling a transformative approach to how business rates are administered.
Small Business Multiplier Freeze
For the fourth consecutive year, the small business multiplier will remain frozen. This decision is a boon for small business owners, providing some much-needed stability in an otherwise fluctuating economic climate. By freezing the multiplier, the government is effectively shielding small businesses from potential increases in their business rates, allowing them to plan and budget more effectively.
Extended Relief for Retail, Hospitality, and Leisure Sectors
The Retail, Hospitality and Leisure (RHL) relief has been extended, offering a sigh of relief for these critical sectors. The extension of a 75% relief, up to a cash cap limit of £110,000 per business, acknowledges the ongoing challenges faced by these industries, especially in the wake of the pandemic. This move is not just a fiscal adjustment but a statement of support to some of the most vulnerable sectors in the UK economy.
Adjustments in Standard Rate Multiplier
In a move reflecting current economic trends, the standard rate multiplier will be adjusted in line with the Consumer Price Index (CPI) inflation. While this might lead to an increase in business rates bills for some entities, it's a step towards aligning the rates system with the broader economic scenario.
Tax Relief for Large Retailers
Interestingly, the package also includes significant tax relief for large retailers. Through full expensing provisions, major retailers stand to benefit substantially, potentially saving hundreds of millions of pounds annually. This aspect of the package is seen as a major win for larger businesses, which contribute significantly to the UK economy.
A Balanced View: Acknowledging the Unheard Voices
Despite these positive steps, concerns remain, particularly from the UK Warehousing Association (UKWA). Their voices represent a crucial segment of the business community, advocating for a fair and equitable rates system. Acknowledging and addressing these concerns is essential for a holistic approach to business rates reform.
CPA's Role in Your Business Success
At Commercial Property Advisors (CPA), we understand the complexities of these changes and their implications for your business. Our team of RICS-regulated experts is dedicated to providing personalised advice and support, helping you navigate this new landscape. We believe in a partnership approach, where your success defines ours.
For more information or to discuss how we can assist you in leveraging these changes for your business advantage, please reach out. Let's work together to ensure your business not only adapts but thrives in this new era of business rates.