To help reduce uncertainty for firms affected by the impacts of coronavirus, the Government has today announced that a revaluation of business rates will no longer take place in 2021.
Legislation had been introduced to bring the next revaluation forward by one year from 2022 to 2021, but following the recent economic impacts of the Coronavirus pandemic, Communities Secretary Rt Hon Robert Jenrick MP says businesses need more certainty during this difficult time.
The Government says it is continuing work on the fundamental review of business rates, with the key aims of reducing the overall burden on businesses, improving the current business rates system, and considering more fundamental changes in the medium-to-long term. A call for evidence for the review will be published in the coming months.
The postponement comes on top of the Government’s support package for business and workers during the economic emergency including:
- Businesses are set to receive a discount of almost £10 billion on their rates bills this financial year in response to coronavirus, after the business rates retail discount was increased to 100 per cent from 50 per cent for 2020 to 2021
- Over £12 billion for local authorities to deliver grants of up to £25,000 to eligible businesses. As of 3 May, over £8.6 billion has been paid out to over 697,000 business properties
- Protections for UK high street shops and other companies under strain from aggressive rent collection and asked to pay what they can during the coronavirus pandemic
- The Coronavirus Job Retention Scheme where small and large employers are eligible to apply for a government grant of 80 per cent of workers’ salaries up to £2,500 a month, backdated to March 1 and available for at least 3 months. The first grants have been paid out. Note: This subsidy is currently under review, as the Chancellor begins a phased withdrawal of the furlough scheme.
- A deferral of the next quarter of VAT payments for firms, until the end of June – representing a £30 billion injection into the economy
- A total of £330 billion worth of Government backed and guaranteed loans to support businesses
For further information about the Government measures to protect individuals and businesses, visit our COVID-19: Support for UK businesses hub.