The Budget 2021, of course! The highlights of what has been described in the professional press as a “Rishy-Washy” budget are as follows:

1). No increase in the Business Rates tax rate (multiplier) for 2022/23 (for this one year only)….which will, effectively, save a potential 3.1% uplift due to the recorded change in CPI as of September 2021….good news for all businesses.
2). A seemingly generous discount of 50% in the rates bills for all qualifying businesses within Retail, Hospitality and Leisure industries for 2022/23 (again, for this one year only). BUT, this discount has a maximum PER BUSINESS and NOT per property of £110k. So not such good news as first may seem, especially for large businesses in these sectors.
3). Until 2035, any Plant and Machinery used on-site for renewable energy at any business will be exempt from Business Rates (NOTE that just applies to the P and M element of the total Rateable Value).
4). From 2023 every business will be able to make (otherwise rateable) improvements to their properties without being penalised by an increase in rates payable…..but, sadly, only for a 12 month period.
5). There will be £1.8 billion of funding to bring 1,500 hectares of brownfield land into use for housing.
6). There will be a £5 billion fund for cladding removal, which will be partly funded via a “Residential Property Developer Tax” (anyone remember Development Land Tax from the 1970’s?) levied upon developers with annual(?) profits exceeding £25 million, at a tax rate of 4% from 2022.

As ever, the devil will be in the detail when published. We will comment further when the required legislation is made. If you wish to discuss any of the above or require advice in relation to how these initiatives will affect your business, please get in touch.

We comment in more detail regarding the “Fundamental Review of Business Rates” in our specific news post.