It is crucial that local authorities are able to fund and deliver public services to a high standard. At the same time, it is vital that businesses are supported. The manifesto I stood on committed to reducing business rates even further and extending discounts for music venues, small cinemas and pubs. High street businesses are already benefitting from recent reforms and reductions to business rates announced since 2016 which are worth more than £13 billion.
A planned review and revaluation of the business rates tax will help ensure a balanced approach. I was pleased that, as part of the 2020 Budget, the Chancellor announced a fundamental review of business rates, due to report in Autumn 2020. Ministers will continue to review how business rates income is used, how well it meets councils’ funding needs and consider the future direction of reforms.
On a final note, it was recently confirmed that retail properties with a rateable value below £51,000 had their business rate bills cut by one-third for two years from April 2019. All businesses in the retail, hospitality or leisure sectors are exempt from business rates for 12 months, to provide support to these industries through the coronavirus outbreak.
