Business rates to fall by 17%
Following Chancellor Jeremy Hunt’s Autumn Statement on Thursday 17 November, Altus claimed 2.1m non-domestic properties had been adjusted and would see rateable values fall from £1.48bn to £1.23bn, a decrease of more than £247.16m (17%), under the 2023 revaluation.
The new rateable values, based on an assessment date of 1 April 2021, will be used to determine the basis of business rates tax calculation from 1 April next year until 31 March 2026.
However, despite rates falling overall for pubs, Altus claimed the reductions “did not go far enough”.
Big winners
While pubs were allowed to re-open for outdoor service in April last year following lockdowns due to the Covid pandemic, the majority had to wait until May, when the Government’s roadmap allowed customers back inside pubs.
Therefore, as the rate for pubs is calculated from figures including turnover and rent, the market on the valuation date could have been “far worse than the values suggest”, according to Altus Group UK president Robert Hayton.
Hayton said: “Whilst pubs are big winners under both the Autumn Statement and 2023 revaluation, at the assessment date pubs were effectively closed and trade had been severely impacted by coronavirus restrictions for over a year.
“Our view is the market on the valuation date was far worse than these new values suggest. Many ratepayers, especially those large operators precluded from the relief scheme, will now want to consider challenging their future rateable values.”
Increased support
Also announced as part of the Autumn Statement, was a £1.6bn scheme to cap bill increases for those who could see higher bills following the revaluation and a reformation of transitional relief, ensuring those seeing lower bills would benefit in full straight away by abolishing downwards transitional relief caps.
Furthermore, the Chancellor also proclaimed an extension of the business rates relief, originally due to end in April 2023, as well as an increase to the support from 50% to 75% up to £110,000 per business.
Moreover, a freeze to the business rates multiplier for another year (2023-2024), keeping the small business and standard multipliers at 49.9p and 51.2p respectively, rather than rising to 52.9p and 54.2p, saving ratepayers £9.3bn over the next five years was also announced.
Hunt said: “Nearly two thirds of properties will not pay a penny more next year, and thousands of pubs, restaurants and small high street shops will benefit.”
