UK Chancellor Rishi Sunak announced a 50% discount in business rates for the retail, hospitality and leisure sectors for the next year, with claims of up to a maximum of £110,000 available. The move is being heralded as a much welcome massive boost to the industry.
The government is introducing a new temporary business rates relief in England for eligible retail, hospitality and leisure properties for 2022-23, amounting to almost £1.7 billion. More than 90% of retail, hospitality and leisure businesses will be eligible to receive at least 50% off their business rates bills in 2022-23.
The government is also introducing a 100% improvement relief for business rates. This will provide 12 months relief from higher bills for occupiers where eligible improvements to an existing property increase the rateable value. The government will be consulting with industry experts on how best to implement this relief, which will take effect in 2023 and be reviewed 5 years later- in 2028.
Outlined in its Budget documents, the Government said: “Reform of business rates will make the system fairer, more responsive and more supportive of investment. The proposals set out will collectively reduce the burden of business rates in England by over £7 billion over the next five years.”
“The commercial property market should welcome the Chancellor’s comments relating to business rates announced in today’s Autumn Budget. Most retail, hospitality, and leisure businesses are still fighting hard to get back on an even keel following the Covid-19 pandemic and so the certainty of continued business rates relief for these sectors is a great help.
“This will aid those business owners and investors looking to prepare their properties for sale and give purchasers the confidence to progress with acquisitions. The introduction of three yearly business rate revaluation in 2023 will help to flatten the peaks and troughs that the previous valuation time scale created.
“The business rates exemptions for green property improvements will benefit and enhance the quality of business property stock at a time where the environmental benefits of a premises are seen as crucial to their sustainability by much of the financial industry,” said Mike Hughes, NAEA Propertymark commercial board member, adding:
“Finding a way to taper the benefits of all these announcements following 2023 may be difficult, but the Chancellor has given us hope for the growth in the commercial property market with this budget.”