The government has on Wednesday (29 March) introduced a new bill to modernise the business rates system by incentivising property improvements and supporting more frequent revaluations.
The government claimed the measures being put forward will review and reform business rates in England, making them fairer and more responsive to changes in the market.
The Non-Domestic Rating Bill will introduce more frequent valuations, to take place every three years 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.
“The introduction of our Non-Domestic Rating Bill seeks to deliver the reforms announced during our Business Rates Review,” Local Government Minister Lee Rowley said.
“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.
Victoria Atkins, Financial Secretary to the Treasury, said: “I want businesses to know that the government is on their side. Businesses have asked for changes to the business rates system and we are acting, including with more frequent revaluations to make the system fairer and more responsive.
“And they come on top of £13.6 billion of business rates support which resets the balance between bricks and clicks businesses, helping our much-loved high streets and communities.”
Helen Dickinson, chief executive of the British Retail Consortium, welcomed the three-yearly revaluations.
“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,” she added.
“Government’s focus must remain on reducing the rates burden, enabling more local communities across the country to thrive.”
The Bill has been introduced in parliament and will be debated in due course.
