Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Spring Budget: £300m for those hardest hit by business rates revaluation

A £300m fund will be made available to local authorities to allow them to provide discretional relief for those hardest hit by the business rates revaluations, chancellor Philip Hammond announced in the Spring Budget today.

The new fund will be allocated using a formula, and councils will decide which businesses should be given the relief.

Hammond also revealed that any firms coming out of small business rate relief would benefit from an extra cap, meaning their rates will not increase by more than £50/month.

These measures, together with a £1,000 discount on business rate bills for all pubs with rateable value of less than £100,000, amount to a further £435m cut in business rates, Hammond said.

He pointed out that business rates raise £25bn a year, so they cannot be abolished as some people have suggested. But he recognised the need to make the business rates system fairer.

In particular, he admitted that the “digital part of the economy” needs to be better taxed. It comes after some critics pointed out that online retailers such as Amazon would enjoy a cut in rates for its warehouses as part of the upcoming revaluation, while independent bricks-and-mortar retailers in some areas face a rise.

The government will set out its preferred approach for reforming the system before the next revaluation, which is due in five years.

Living wage

Hammond also reiterated that the national living wage will rise to £7.50 in April, as previously announced, and the government will increase the income tax free personal allowance to £11,500 and the higher rate to £45,000.

This will rise to £12,500 and £50,000 respectively by the end of this parliament.

 

 

 

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.