The Government has introduced a bill to modernise the business rates system in England, claiming it will make the system fairer and more responsive to changes in the market.
The Non-Domestic Rating Bill will introduce valuations on a tree-year cycle instead of the current five, meaning those with falling values will see their bills drop sooner.
It will also provide new business rates improvement relief, so businesses making qualifying building improvements will not face higher business rates bills for 12 months. This will make it easier for businesses to invest with new reliefs for property improvements, providing tax breaks for businesses who are extending or upgrading their property.
Local Government Minister Lee Rowley MP said: ‘The introduction of our Non-Domestic Rating Bill seeks to deliver the reforms announced during our Business Rates Review. We are bringing the administration of the tax up to date, and making the system more responsive to changes in the economy and introducing new support to reduce barriers to business investment.’
The bill will build on recent steps to cut business rates, with £13.6 billion of support announced at the Autumn Statement, and to redistribute the tax through the 2023 revaluation.
Helen Dickinson, Chief Executive of the British Retail Consortium, said: ‘Retailers welcome moving to three-yearly revaluations, meaning business rate bills will reflect underlying market conditions more quickly. Changes to valuation appeals processes and more transparency are also vital and the improvement relief will encourage more retailers to invest in their properties. These are all positive changes, but the job is not done. Government’s focus must remain on reducing the rates burden, enabling more local communities across the country to thrive.”
