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A 5p reduction in business rate multiplier will save convenience stores thousands of pounds per year which will help retailers invest in their businesses, ACS Government Relations Director Edward Woodall has said while giving evidence to a Committee of MPs in parliament today (11).

The Non-Domestic Rating (Multipliers and Private Schools) Bill intends to introduce higher business rates multipliers for the largest business properties (those over £500,000 in rateable value) and lower multipliers for retail and hospitality businesses. Following the Budget, the business rates discount for retail and hospitality businesses is reducing from 75 per cent to 40 per cent in April.

One of the considerations of the Bill is the level at which the new retail and hospitality multiplier could be set at. The small business multiplier is currently set at 49.9p, while the standard non-domestic rating multiplier is set is 54.6p.

During the evidence session, Woodall told the Bill Committee that to make a tangible difference to local shops and other businesses, the new multiplier should be set up to 20p lower than it is currently which would result in savings of thousands of pounds a year for essential retailers that could be put to use effectively.

ACS Government Relations Director Edward Woodall said, “The vast majority of convenience stores would benefit from the new retail and hospitality multiplier. For a retailer that sits just outside the threshold of small business rate relief at £15-16k rateable value, a 5p reduction in the multiplier would save them around £1,000 per year while a 20p reduction would save over £3,000 a year.

"This is a significant sum to help retailers invest in their business, either defensively on crime prevention and detection, or positively in their community.