Paul Easton – National Head of Business Rates at Lambert Smith Hampton comments on the Autumn Statement the Chancellor has delivered:
“As expected the small business rate relief scheme that exempts certain rate payers from paying any business rates and reduces the amount paid by others (around 400,000 pay no business rates at all) has been extended to 31st March 2017, the final year of the current 2010 business rates revaluation period. It was almost inconceivable that the Chancellor would not extend this additional relief for small businesses and it will be welcomed by all who currently benefit from it. Most would not however have budgeted for a rates bill in 2016-17 or a higher rate bill if this relief had not been continued with.
“The Chancellor also reminded us that from 2020 onwards councils will be able to keep all the business rates they collect, whilst the current nationally set business rates multiplier/UBR will be abolished and will be set by each local council. Where there are elected mayors they will have the power to raise extra business rates provided this is spent on infrastructure projects. There is still little detail available on this game changing proposal that was unexpectedly announced recently. Many have commented that they can see a return to wide variations in business rate payments across the regions and uncertainty for businesses trying to budget this significant outgoing.”