Business rates for retailers will be cut by just 0.03% from 2021 under Conservative spending plans, research by advisory firm Altus Group has found.
The Conservative manifesto outlines plans to reduce the rates burden by £320m in the 2020/21 financial year, by extending a retail discount from 33% to 50% for businesses with a rateable value below £51,000.
However, for the three following years, it said it will reduce total tax receipts by £10m each year.
Altus Group said plans to reduce business rates by £10m a year from 2021 to 2024 do not go far enough to have a “meaningful impact”. It said this compares with a business rates yield of £101.6bn across the UK for 2021/22, 2022/23 and 2023/24, meaning the rates cut will only reduce the burden by 0.03%.
Robert Hayton, head of UK business rates at Altus, said: “The commitment to lower the burden as part of a wider review is an acknowledgement that the standard rate of tax, at its highest level since 1990 at over 50%, is a major issue for business across all sectors of the economy.
“However, the promised cut of around 0.03% from April 2021, while a start, will need to go much further and deeper to have a meaningful impact.”