UK government to revaluate Business Rates in 2021

On Tuesday UK Chancellor Philip Hammond made the Spring 2018 budget statement, which saw for retailers plans to bring forward the next business rates revolution in 2021.

Hammond also stated the government would reduce the time between valuations to every three years.

Currently 55,000 retailers face a rise in rates, which for some will mean having to close their doors.

Hammond laid out plans to bring forward the next business rates revaluation to 2021, as well as reducing the time between subsequent valuations to every three years.

British Retail Consortium (BRC) chief executive Helen Dickinson commented: “We’ve consistently called for more frequent revaluations and welcome the Chancellor’s decision to move forward the next revaluation by a year to 2021 as a step in the right direction."

Business rates are a tax levied on the occupation of property and ownership of empty buildings. All non-domestic properties need to pay business rates, similar to individuals paying council tax on private residences. The revenue raised is used as part of the funding for local services.

However, this system is by many deemed as out-dated, unfair and not related to the ability to pay, or changing economic circumstances. Business rates remain an unaffordable cost for many shopkeepers and retailers, as they are consistently the third highest cost after staff and rent.

Photo credit: Going out of Business, article source: The Retail Gazette