The measure
The government will provide £435 million of further support for businesses facing significant increases in bills due to the English business rates revaluation from April 2017. This support is in addition to the £3.6 billion transitional relief announced in November 2016, and includes:
- limiting the annual increase for small businesses losing Small Business Rate Relief to the greater of £600 or the real terms transitional relief cap;
- a £300 million business rates hardship fund to enable local authorities to grant discretionary relief to individual hardship cases; and
- a one year £1,000 business rate discount for public houses with a rateable value of up to £100,000.
Local government will be fully compensated for the loss of income as a result of these measures.
The government will set out its preferred approach for delivering more frequent business rate valuations at Autumn Budget 2017 and will consult ahead of the next revaluation in 2022.
Who will be affected?
Businesses operating in England that would have suffered significant increases in their business rates bills from April 2017 following the English business rates revaluation. English public houses with a rateable value of up to £100,000.
When?
From 1 April 2017. The discount for pubs will last for one year and the additional support will last until the next revaluation in 2022.
Our view
Businesses that would have suffered significant increases to their business rates bills and the c.90% of pubs with a rateable value up to £100,000 will welcome this additional support.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
