Businesses to benefit from accurately lower bills

Figures released from the Department for Communities and Local Government (DCLG) have shown that thousands of businesses across the country are set to benefit from falls in their business rates bills.

A revaluation of business rates, which will come into effect in April, will mean businesses across the country will get lower bills that accurately reflect changes in their local property market - giving regional economies ‘the edge’ to drive growth for the country as a whole.

Nearly three-quarters of businesses across the country will see no change to their bills, and for the small minority who will see an increase, there will be a system of transitional relief over five years.

Communities Secretary Sajid Javid claims that this will benefit regions across the country, including the Northern Powerhouse and Midlands Engine, as bills across northern regions are due to fall by 10 per cent (£600 million) before inflation and transitional relief, while businesses in the Midlands Engine will see their bills fall by an average five per cent (£230 million).

These measures are on top of wider reforms to business rates, which will mean by 2020, councils will be able to keep 100 per cent of all locally-raised taxes to help fund local services

Javid said: “Our regions have huge economic potential, and can be a catalyst to driving economic growth across the country. The revaluation of business rates will help make sure bills are accurate, with nearly three-quarters of businesses seeing a fall, or no change.

“In fact, the generous reliefs we are introducing mean that 600,000 small businesses are paying no rates at all – something we’re making permanent so they never pay these bills again. And across the country, there’s also a £3.6 billion scheme to support companies affected by the business rates revaluation.”