Autumn statement 2016

The Chancellor presented his Autumn Statement to Parliament on 23rd November 2016 and this contained a number of fairly minor changes to the business rates system in England. This included a change to the Uniform Business Rate multiplier for 2017/18. However, no significant reforms to the business rates system overall, were announced.

The Uniform Business Rate multiplier for next year (2017/18) for larger businesses will be 47.9 pence (compared with the current 49.7 pence). This reflects the effect of the 2017 rating revaluation. For smaller businesses it will be 46.6 pence (compared with the current figure of 48.4 pence).

Other announcements included; confirmation of the doubling of small business rate relief to 100% for small businesses with Rateable Values up to £12,000. In addition, there will be tapered relief for properties up to Rateable Value £15,000.

The Chancellor also set out Government’s intentions regarding Transitional Relief, which, as with previous revaluations is intended to phase in any significant changes in rates liability that might occur as a result of the 2017 rating revaluation. The basic principles are as follows:

  • Small properties, with Rateable values up to £20,000 (or £28,000 in London) the maximum increase in rates liability in 2017/18 will be limited to 5% (plus RPI inflation). The maximum decrease in liability in 2017/18 will be 20%, (plus RPI inflation).

 

  • Medium properties, with Rateable values between £20,000 (or £28,000 in London) and £100,000, the maximum increase in rates liability in 2017/18 will be limited to 12.5% (plus RPI inflation). The maximum decrease in liability in 2017/18 will be 10% (plus RPI inflation).

 

  • Large properties, with Rateable values in excess of £100,000, the maximum increase in rates liability will be 42% (plus RPI inflation). The maximum decrease in liability in 2017/18 will be 4.1% (plus RPI inflation).

 

From these announcements in the Autumn statement, it would appear that government is making efforts to support the occupier of smaller properties with the intention being to try to assist smaller businesses, although this is not always the case. There is however, clearly going to be a more significant effect on anyone occupying larger properties.