Autumn Statement 2022 – Business Rates in England

The Autumn Statement earlier today provided much good news for business ratepayers in England.

The highlights are:

• Freezing the business rate multipliers for 2023/24 – the fear was that this would continue to be linked to the CPI leading to a 10.1% increase.
• Extending and increasing the Retail, Leisure and Hospitality Relief Scheme from 50% to 75% relief for 2023/24, albeit capped at £110,000 per business.
• There will be a scheme of upwards transition protecting businesses facing increased rate bills as a result of the 2023 rating revaluation.   Crucially, cancelling the pernicious downwards transition for ratepayers seeing reduced bills as a result of the 2023 revaluation.  These ratepayers will see the positive effect of the revaluation from April 2023.   This is to be permanent.
• Protecting small businesses, that due to increases in RV at the 2023 revaluation, will lose their eligibility to either small business or rural rate relief.   The scheme will provide £500 million in support over the next 3 years to cap bill increases to £50 per month (£600 per year) for an estimated 80,000 properties.

Andrew West, Director of Business Rates at Cooke & Arkwright commented  “To his credit, the Chancellor addressed principal concerns of business ratepayers and their representatives.

It is hoped that the Welsh and Scottish devolved administrations will make similar announcements over the coming days to reduce the business rate burden from 1^st April 2023, the date from which the 2023 rating revaluation takes effect.  Businesses can then start to understand this element of expenditure within their business plans during this extremely challenging time”.