Autumn 2021 UK Budget English Business Rates
Post Author:
Rona Burns
Date Posted:
November 2, 2021
Share This:
Categories:
There were a lot of announcements in the UK budget regarding English Business Rates. The UK Government will:
- freeze the English business rates multiplier for a second year, from 1 April 2022 until 31 March 2023, keeping the multipliers at 49.9p and 51.2p
- introduce a new temporary English business rates relief for eligible retail, hospitality and leisure properties for 2022-23. Eligible properties will receive 50% relief, up to a £110,000 per business cap
- introduce a 100% improvement relief for English business rates. This will provide 12 months relief from higher bills for occupiers where eligible improvements to an existing property increase the rateable value. The UK Government will consult on how best to implement this relief, which will take effect in 2023 and be reviewed in 2028
- introduce from 1 April 2023 until 31 March 2035 targeted English business rate exemptions for eligible plant and machinery used in onsite renewable energy generation and storage, and a 100% relief for eligible heat networks, to support the decarbonisation of non-domestic buildings
- increase the frequency of English business rates revaluations so that they take place every 3 years instead of every 5 years, starting in 2023
- provide additional funding to the Valuation Office Agency to support the delivery of the new revaluation cycle in England
- extend transitional relief for small and medium-sized English businesses, and the supporting small business scheme, for 1 year. This will restrict bill increases to 15% for small properties (up to a rateable value of £20,000 or £28,000 in Greater London) and 25% for medium properties (up to a rateable value of £100,000), subject to subsidy control limits
English Local Authorities will be fully compensated for the loss of income as a result of these business rates measures . The block grants of the Devolved Administrations will be increased in the usual way.
Again we await the 2022/2023 Scottish Budget scheduled for 9 December 2021 to find out the Scottish Government’s plans for Scottish Non Domestic rates.
Online Sales Tax consultation.
The UK Government believes that High Street businesses still operate at a significant disadvantage to online retailers who generally pay lower Business Rates. Some of these online retailers also pay a lot less corporation tax.
The UK Government will therefore consult shortly on an Online Sales Tax which may help level the playing field.
If introduced, the revenue from such an Online Sales Tax would be used to reduce business rates for retailers in England. The block grants of the Devolved Administrations would be increased in the usual way.
