Small businesses are still waiting for financial support promised in the Spring Budget to help them cope with rising business rates.
Chancellor Philip Hammond announced a £300 million fund over 4 years to provide relief for smaller businesses most affected by revaluated business rates, which came into effect on 1 April 2017.
Business rates are defined as a property tax on rental values.
Total funding available to support local authorities’ discretionary relief scheme is:
- 2017/18: £175 million
- 2018/19: £85 million
- 2019/20: £35 million
- 2020/21: £5 million.
Under the revaluation, small business rate relief will gradually fall from 100% to 0% for eligible properties with a rateable value of £12,001 to £15,000.
Businesses using 1 property with a rateable value below £12,000 will not be required to pay business rates.
Firms no longer getting small business rate relief will not see their bills increase by more than £50 a month from 1 April 2017 to 31 March 2018.
Contact us to discuss how these changes may impact your business.