Business rates revaluation deferred

As a result of the Coronavirus, the planned business rates revaluation that was to take place in 2021 has been postponed until at least 2022.

Communities Secretary Rt Hon Robert Jenrick MP has announced.the postponement of the revaluation which had been brought forward from 2022. A regular revaluation ensures business rates bills remain accurate.

The Non-Domestic Ratings (List) Bill 2019-20 was introduced to bring the date of the next revaluation forward from 2022 to 2021,.but following the economic impacts of the coronavirus pandemic it was felt that businesses needed more certainty at this time.

The deferral comes on top of other government support for property-related businesses such as:

• a discount of almost £10 billion on rates bills for this financial year, after the business rates retail discount was increased to 100% from 50% 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 from aggressive rent collection

Fundamental review

The minister made clear that the government is continuing work on a 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.

There will be a call for evidence in the coming months.

Many business groups have long campaigned for a root-and-branch reform of this tax.

Have you received your Small Business Grant or Retail, Hospitality and Leisure Grant?

When these grants were first announced it was made clear that local authorities would contact eligible firms in their area. But this does not appear to be the case in all instances. If you have not been contacted by your local authority, you should contact them as soon as possible to check on your entitlement.

For further information on SBGF and the RHLGF, please read our separate article.

For more information on government support available, please check our Coronavirus Knowledge Hub.