The Government has again recognised the impact that business rates has on business and has announced – in its Autumn Statement – that it will extend the doubling of small business rates relief for a further 12 months says commercial property agent Prop-Search, as well as other far reaching measures.
Small Business Rates Relief has now been extended until April 2017. This means that around 405,000 of the smallest businesses will continue to receive 100% relief from business rates, with around a further 200,000 benefiting from tapering relief.
Samantha Jones, an Associate Surveyor at Prop-Search, says: “The Government is also undertaking a review of the business rates system and will report in the Budget 2016. In essence, local leaders will have radical new powers to take responsibility for driving local growth which will include allowing them to cut business rates as well as retaining their business rates revenue.”
The devolution revolution sets out a new deal for Local Government. It requires Local Authorities to make efficiency savings, but in return offers them unprecedented new levels of power to generate growth for their area. The Government will allow Local Government to keep the rates they collect from business, give Councils the power to cut business rates to boost growth, and give elected city-wide Mayors the power to levy a business rates premium for local infrastructure projects – with the support of local business.
The aim is that by the end of the Parliament, Local Government will retain 100% of business rate revenues to fund local services, giving them control of £13 billion of additional local tax revenues, and £26 billion in total business rate revenues.
The Uniform Business Rate will be abolished and any local area will be able to cut business rates as much as they like, to win new jobs and generate wealth. It is envisaged that fixing the current broken system of financing Local Government will strengthen incentives to boost growth, help attract business and create jobs.
Elected city-wide Mayors will be able to add a premium to business rates to pay for new infrastructure, provided they have the support of the local business community through a majority of business members of their Local Enterprise Partnership.
