Chancellors Spring Statement
In his Budget Statement to Parliament on 8th March 2017 the chancellor announced some additional measures to assist businesses most adversely affected by the 2017 re-valuation. All the specific details of these additional measures and how they are to be applied are not yet known. Further details will be made available as soon as possible and amended rate demands will be issued to those properties eligible for relief once the application process has been established
The measures announced are:-
- An additional £1000 discount for local pubs with a rateable value of less than £100,000. This will be for one year only.
- Any business no longer eligible for SBRR to have increases capped at no more than £600 in the first year.
- A £300m Discretionary fund to be made available to Council’s to assist businesses hardest hit by the revaluation. The Government have yet to announce details of how this funding will be shared amongst LA’s.
- All rateable values are reassessed by the Valuation Office Agency at a general revaluation to ensure bills paid by any one ratepayer reflect changes over time in the value of their property relative to others. The 2017 revaluation takes effect from 1st April 2017 and the new values will be used to calculate business rate bills from that date. Further information can be found at www.gov.uk/introduction-to-business-rates/revaluation
Transitional scheme for the 2017 rating list
- For those ratepayers that would otherwise see significant increases in their rates liability, the Government has put in place a transitional relief scheme to limit and phase in changes in rate bills as a result of the 2017 revaluation. To help pay for the limits on increases in bills, there also have to be limits on reductions in bills.
- Under the transitional relief scheme, limits continue to apply to yearly increases and decreases until the full amount is due. The scheme applies only to the bill based on a property at the time of the revaluation. The transitional arrangements are applied automatically, you do not have to apply for them and will be shown on the front of your bill.
- The provisional 2017/18 standard non-domestic rating multiplier from 1 April 2017 is 47.9p and the small non-domestic standard rating multiplier is 46.6p. The multipliers will be confirmed after either the Local Government Finance Report for 2017-18 has been approved by the House of Commons or 1 March 2017, whichever is earlier.
Small Business Rate Relief
- The doubling of the Small Business Rate Relief from 50% to 100% will be made permanent from 1 April 2017. The £6,000 and £12,000 thresholds will increase to £12,000 and £15,000 respectively. The threshold for the standard business rates multiplier will also increase from a rateable value of £18,000 (£25,500 in London) to £51,000.
Rural rate relief
- The Autumn Statement confirmed that the Government will double rural rate relief to 100% from 1 April 2017.
- The Government will provide a new 100% business rates relief for new full fibre infrastructure for a five year period from 1 April 2017 to support the rollout of new full-fibre broadband infrastructure and future 5G communications to homes and businesses.
- £1,500 business rates discount for office space occupied by local newspapers, up to a maximum of one discount per local newspaper title and per hereditament, and up to state aid limits, for 2 years from 1 April 2017.
Empty property rates
- From 1st April 2017 the government has announced that it intends to increase the rateable value threshold below which buildings are exempt until they become occupied again from £2,600 to £2,900