Budget 2021 – Important Business Rates Changes Announced

In his 2021 Autumn Budget and Spending Review, the Chancellor of the Exchequer outlined a number of Business Rates measures intended to help businesses. 

They included a freeze in the UBR (Uniform Business Rate) multiplier for the second year running, resulting in the cancellation of the anticipated c.3% increase, for the forthcoming year 2022/23.

Relevant small businesses will benefit from transitional relief in the final year of the current Rating List 2022/23 - with adjusted rises capped at 15% (up to RV £20k / £28k Greater London) and 25% for ‘medium’ properties (to RV £100k). We understand these will be subject to State Aid/subsidy limits.  

There will be further relief for eligible retail, hospitality and leisure businesses as they ‘adapt and recover’ from the measures introduced to combat Covid19. This will be at 50% for 2022/23, however it will be subject to a cash cap of £110,000 per business.

Other changes which will be introduced from April 2023 include12-months relief at 100%, on improvements which will increase the property’s Rateable Value, as well as targeted exemptions for eligible plant and machinery used in onsite energy generation and storage.

In addition, the Government simultaneously released its final report, following consultation as part of the fundamental review of Business Rates. Whilst there remains a degree of uncertainty over timings and implementation at this stage, some of the key reforms include:
  • A switch to more frequent revaluations every three years, from April 2023 onwards
  • A ‘duty to notify’ the Valuation Office of changes to the occupier, or physical property characteristics and to provide rent, lease and trade information. These duties are due to be phased in during the forthcoming 2023 revaluation
  • Removal of the ‘Check’ stage of the Check Challenge Appeal process to come in with the 2026 revaluation, along with a three month ‘Challenge’ deadline.

Click the link below for the full report: 

If you have any queries about the recent announcements, or require advice on Business Rates issues, contact Chris Morrow or Brian Rees

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