The Chancellor’s Autumn Budget unveiled substantial tax changes set to raise certain levies, while confirming the existing 40% discount available to some businesses will be scrapped in April. The proposed tax alterations will be implemented gradually over three years, with the Treasury pledging ‘significant transition relief’ amid calls for additional support.
The Treasury revealed that updated property valuations will take effect from 2026, potentially pushing up commercial property tax bills for numerous businesses. Simultaneously, the 40% discount currently benefiting retail, hospitality and leisure firms will cease in April.
Concerns about the increases have prompted the government to introduce targeted support for pubs grappling with higher business rates. However, UK hotel chains and holiday parks have urged ministers to broaden the assistance across the entire sector.
Following these appeals, Conservative MP Joe Robertson asked whether the Chancellor intended to extend business rates relief to retail businesses.
Dan Tomlinson confirmed the Government would be delivering a support package valued at £4.3billion over the next three years, which would include safeguards for those watching their bills climb due to the revaluations.
The Labour MP highlighted that thanks to this support, “over half of ratepayers will see no bill increases”. He also maintained 23% of ratepayers would actually see their bills decrease.
Those experiencing increases can also anticipate having the rises capped at 15% or less next year.
He penned: “The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency and the multiplier values, which are set by the Government.
“RVs are re-assessed every three years. The most recent revaluation took effect from 1 April 2023 and was based on values as of 1 April 2021. The next revaluation will take effect from 1 April 2026 based on values of 1 April 2024.
“At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties, including those in the hospitality sector as they recover from the pandemic.
“To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation.
“As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.”