Chancellor Rishi Sunak announced that business rates for small retailers will be abolished for one year in his first Budget last week.
Thousands of commercial properties are set to benefit from the relief, with small businesses with a rateable value below £51,000 seeing business rates abolished for one year.
The tax cut will be worth approximately £1 billion, while retailers that are eligible for small business rates relief may also be eligible for a £3000 grant, worth around £2 billion for 700,000 small businesses in the UK.
The Chancellor, Rishi Sunak, said: “Our manifesto promised that for shops, cinemas, restaurants, and music venues with a rateable value of less than £51,000 we would increase their business rates retail discount to 50 per cent.
“Today I can go further, and take the exceptional step, for this coming year, of abolishing their business rates altogether.”
Some experts have pointed out that there has been no wholesale reform of business rates for commercial properties, and that despite just 10 per cent of all retail properties being over £51,000 in rateable value, that these account for 69 per cent of the total business rates revenue in the retail sector.
The Chancellor has, however, stated that the business rates system as a whole will be reviewed, with conclusions set to be published in the autumn.
For help and advice on matters relating to commercial property, contact our expert team today.
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