Business rates will be scrapped for thousands of small businesses over the next year.
Business rates are to be scrapped for thousands of small businesses over the next year, the Chancellor revealed in his first budget yesterday (March 11).
Businesses such as shops, cinemas, restaurants and music venues with a rateable value under £51,000 will not have to pay the tax for the next financial year.
The Conservative Government had previously confirmed that these businesses were due to get a 50% discount for the year, a rise from a previous discount of 33%.
In addition, the removal of rates will also be extended to leisure, retail and hospitality businesses which were previously ineligible for a discount. These include the likes of museums, art galleries, theatres, caravan parks and gyms, sports clubs, small hotels and B&Bs and night clubs among others.
Chancellor Rishi Sunak said that the measures resulted in a tax cut worth over £1 billion, saving each business up to £25,000. “Over the next 12 months, nearly half of all business properties in England will not pay a penny of business rates,” he said.
£2.1 billion is also to be made available for grants of £3,000 for any business which qualifies for small business rates relief.
A “fundamental review” into the long-term future of business rates will be concluded at the autumn budget.
Despite the boost for small businesses, figures from Altus Group show that there are 47,928 retail properties in England with a rateable value over £51,000, with a combined value of £11.32 billion, which won’t benefit from the cut.
TheIndustry.Fashion reported that, last week, organisations such as the Association of Convenience Stores, British Chambers of Commerce, British Property Federation and Federation of Small Businesses called on the Government for a major overhaul of the current rates system.
This follows a letter signed by more than 50 retail bosses from the likes of Marks & Spencer and Harvey Nichols, urging for the current system to be replaced.
