The much anticipated Autumn Statement brought some mixed news with regard to business rates.

Strutt & Parker believes it is certainly welcome news to see that the double small business rates relief will remain for another year. This will help approximately 385,000 small businesses to benefit from full rates relief until April 2016 with around a further 190,000 benefiting from partial relief. Furthermore, the discount for retailers with properties that have a Rateable Value of less than £50,000 will be increased by £500 to £1,500 next year. The rise will bring the total relief on business rates to £1bn and help some 500,000 companies.

Strutt & Parker argues that more welcome is the Government’s recognition that the system is outdated and that it is committed to reviewing the 400 year old taxation method. 

Marcus Dorfman, Associate in Business Rates at Strutt & Parker, said: “It is unfortunate that this will not be reported until the 2016 Budget but it is nonetheless encouraging that they intend to deal with the flawed system.”

The planned 2017 Rates Revaluation will likely see considerable increases in the rates bills of some Central London occupiers, and the sooner this is addressed the better.

Marcus Dorfman added: “Many occupiers are unprepared for the inevitable rates hike in April 2017, which will be based on April 2015 rental values. The Central London retail market in particular has certainly seen substantial rental growth since the last Antecedent Valuation Date of 1st April 2008 and so Rateable Values will rise accordingly. While the Uniform Business Rate (the multiplier) may well go down in 2017, rates payable will inevitably increase and we encourage occupiers to seek professional advice as to reducing your rates liability both for the current and upcoming Rating Lists.”