AUTUMN BUDGET BUSINESS RATES ANNOUNCEMENT - ENGLAND

In the Autumn 2021 Budget, Chancellor Rishi Sunak announced various pledges to reduce the burden of business rates for firms in England including:

• No inflationary increase in the UBR from April 2022
• Temporary 50% rates relief for retail, hospitality and leisure businesses throughout 2022-23, capped at £110,000 per business
• Confirmation that business rates will be retained and reformed including a move to 3 yearly revaluations from 2023 onwards
• Introduction of new business rates improvement relief where ratepayers will have any increase in rates as a result of alterations frozen for 1 year
• Supporting investment in green technology with new reliefs planned over the next 5 years to enable businesses to improve and decarbonise their properties
• A commitment to explore the arguments for and against a UK-wide online sales tax, with the aim of raising revenues to fund further business rates reductions in the future

Lynsey Russell, Business Rates Associate at Ryden, comments on this announcement:

"The budget coincides with the outcome of the Government’s fundamental review of business rates in England and suggests these proposals will collectively reduce the burden of business rates in England by over £7 billion over the next five years.

"Ryden unequivocally agrees with the move to 3 yearly revaluations, which is a long overdue fundamental change and will allow rateable values to be more closely aligned to market values than what the current system allows. The additional relief measures are also welcomed as firms continue to respond to the pandemic however this will ultimately be of greater benefit to smaller businesses only."

For further information on reliefs, appeals or any business rates matters, please contact our Business Rates experts:

• Lynsey Russell (Scotland Central Belt & England)
• Lorna Greig (Scotland North & North East)