The new rateable values for non-domestic properties, which will be used to determine the basis of business rates bills for three financial years, reflect changes to the property market between 2015 and 2021.
According to the figures, publicans could save some £5,534 on business rates tax, equating to a tax cut of 58% compared with 2017. In addition, rateable values also decreased by 17%.
Much needed respite
Altus Group global president of property tax Alex Probyn said: “These tax changes will bring much needed respite from the current high cost-of-doing business for high street firms.”
The Government also froze tax rates from 1 April, as part of a £13.6bn support package announced last Autumn, to protect firms from rising inflation.
The retail, hospitality, and leisure discount was also increased from 50% to 75% for 2023/24 up to a cash cap of £110,000 per business.
However, Probyn warned “the freeze in tax rates and the bigger retail discount are just a 1-year commitment”.
The revaluations are the first for 6 years and follow last week’s pledge from the Government to conduct more frequent valuations in order to “reduce barriers to business investment”, according to Local Government Minister Lee Rowley MP.
Never-ending hurricane
Revaluations also came into effect in Wales, Scotland, and Northern Ireland where business rates are devolved, over the weekend.
Rowley added: “This is another step in the right direction for making sure the UK continues levelling up and supports businesses to grow and flourish.”
However, the sector also saw a reduction to energy support on top of an increase to the National Living Wage (NLW) come into force on 1 April, with the British Beer & Pub Association (BBPA) having calculated pubs need to increase turnover by 11% to break-even.
BBPA chief executive Emma McClarkin told The Morning Advertiser: “Everybody keeps calling it a perfect storm but it feels like a never-ending hurricane.”
