Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 26
26
We welcome many of the Government’s reforms to business rates, in particular the more frequent...
Recommendation
We welcome many of the Government’s reforms to business rates, in particular the more frequent revaluations and the 12-month holiday from increases arising from investing in improvements. But we are concerned that they do not amount to long-term or fundamental reforms that will make a significant difference to high street businesses. The Government should set out its plan for when the 50% discount for retail, hospitality and leisure businesses comes to an end after a year, such as a permanent reduction in the multiplier. The plan needs to be for long-term reform of business rates that reduces the need for a complicated system of reliefs, and does not reduce income for local authorities. (Paragraph 127) 72 Supporting our high streets after COVID-19
Government Response
Acknowledged
HM Government
Acknowledged
The government has significantly reformed the business rates system to reduce the burden of business rates on firms in the long-term. A move to 3-yearly revaluations will ensure that bills are more responsive to changing economic conditions and make the system fairer for ratepayers. Additionally, the Business Rates Technical Consultation closed on February, we are currently analysing responses to government’s proposals to implement of new duties and administrative reforms which are designed to make the business rates system more accurate, transparent and simple. These new duties will support the move to 3-yearly revaluations and improve valuation accuracy by ensuring a more timely and comprehensive flow of information to the Valuation Office Agency (VOA), benefitting all ratepayers by ensuring that liabilities are more likely to be correct. The government has also provided targeted support for the high street with the 50% relief for retail, hospitality and leisure businesses, to provide stability ahead of the 2023 revaluation. The extension of the multiplier freeze for 2022-23 is a tax cut worth £4.6bn to businesses over the next 5 years, and will support all ratepayers, large and small, ahead of the revaluation in 2023.