{"id":165795,"date":"2020-03-11T15:13:00","date_gmt":"2020-03-11T15:13:00","guid":{"rendered":"https:\/\/www.theindustry.fashion\/small-business-rates-to-be-scrapped-for-next-financial-year\/"},"modified":"2021-08-06T12:04:58","modified_gmt":"2021-08-06T12:04:58","slug":"small-business-rates-to-be-scrapped-for-next-financial-year","status":"publish","type":"post","link":"https:\/\/www.theindustry.fashion\/small-business-rates-to-be-scrapped-for-next-financial-year\/","title":{"rendered":"Small business rates to be scrapped but disappointment for large retailers"},"content":{"rendered":"
Business rates will be scrapped for thousands of small businesses over the next year however there is disappointment that larger retailers will receive no relief<\/strong>, despite heavy campaigning.<\/p>\n <\/p>\n Chancellor Rishi Sunak announced that businesses such as shops, cinemas, restaurants and music venues with a rateable value under \u00a351,000<\/strong> will not have to pay the tax for the next financial year.<\/p>\n The Government previously announced that these businesses were due to receive a 50% discount for the year, up from a previous discount of 33%.<\/p>\n It said it will also extend the removal of rates to leisure, retail and hospitality businesses who previously were ineligible for a discount<\/strong>, such as museums, art galleries, and theatres; Caravan parks and gyms; Small hotels and B&Bs; sports clubs, night clubs; club houses, guest houses.<\/p>\n Delivering his first budget, Sunak said: \u201cThat means any eligible retail, leisure or hospitality business with a rateable value below \u00a351,000 will, over the next financial year, pay no business rates whatsoever. That is a tax cut worth over \u00a31 billion, saving each business up to \u00a325,000.<\/strong><\/p>\n \u201cAnd it means, over the next 12 months, nearly half of all business properties in England will not pay a penny of business rates.<\/strong>\u201d<\/p>\n However, there are 47,928 retail properties in England with a rateable value over \u00a351,000<\/strong> \u2013 with a combined value of \u00a311.32 billion, which will be precluded from the cut, according to figures from Altus Group.<\/p>\n Sunak also told ministers that the Government would increase the current business rates discount to pubs, which have a rateable value below \u00a3100,000, from \u00a31,000 to \u00a35,000.<\/p>\n The Government also announced \u00a32.1 billion would be made available for grants of \u00a33,000<\/strong> for any business which qualifies for small business rates relief.<\/p>\n Sunak also launched a \u201cfundamental review\u201d into the long-term future of business rates,<\/strong> to be concluded at the autumn Budget. The Government previously said it would launch a review into the rates system.<\/p>\n Rates bills are based on a complicated formula which involves analysis by Government inspectors into rental values<\/strong> of all business premises in England and Wales, raising around \u00a340 billion a year for the Treasury.<\/p>\n Last week, organisations including the Association of Convenience Stores, British Chambers of Commerce, British Property Federation and Federation of Small Businesses all called on the Chancellor for a major overhaul of the current rates system.<\/p>\n