Spring Budget 2017: The business rate reforms set to support the most vulnerable firms
The three business rate reforms could be crucial for struggling businesses
Chancellor Philip Hammond used the Spring Budget to reveal three business rate reforms intended to soften the blow of rate increases and appease those hit hardest, with 435m in government funding set aside to finance the package.
Hammond announced a hardship fund for local authorities to support struggling small businesses, caps to rate increases for firms losing existing relief and a special discount for Britain’s pub landlords.
£300m discretionary support fund
Hammond acknowledged that re-evaluation of rates had created hard cases, and responded with a discretionary support fund? to support the most vulnerable business owners.
Through a 300m discretionary relief? fund local authorities will be able to give direct financial support to local businesses facing the biggest increases in rates.
London’s independent retailers are braced for a doubling of existing rates under re-evaluation, and James Lowman, CEO of theassociation of Convenience Stores, welcomed new business rate reforms.
the 300m discretionary fund given to local authorities could provide welcome relief to the hardest hit by business rates increases, he said.
£50 cap for businesses taken out of rate relief
Small business owners losing their current rate relief after the re-evaluation will be supported by a cap to business rate increases. No business taken out of the relief scheme will be charged more than 50 per month.
Under the reformed system, subsequent rate increases will be capped at 50 per month or the new transitional relief cap, whichever is highest.
Better broadband could also be on the way, with 200m for investment in infrastructure
£1, 000 discount for pubs
Local pubs with a rateable value of under 100, 000 have been handed a discount of 1, 000 ahead of the imminent re-evaluation.
This scheme means that nine in every ten UK landlords will be supported in absorbing their updated business rates bill for 2017/18.
Speaking to Business Advice on the new discount, CEO of pub chain St Peter’s Brewery, Steve Mangall, welcomed the recognition of the plight of pubs and the struggles they face.
Praseeda Nair is the editorial director of Business Advice, and its sister publication for growing businesses, Real Business. She's an impassioned advocate for women in leadership, and likes to profile business owners, advisors and experts in the field of entrepreneurship and management.
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