Business rates review report pushed back until autumn 2021
Retailers, hospitality firms and landlords will have to wait until later in 2021 for the government to publish a final report on its review of business rates.
Due to the ongoing and wide-ranging impacts of the pandemic and economic uncertainty, the government said the review’s final report would be released later in the year “when there is more clarity on the long-term state of the economy and the public finances”.
The government will publish the final report in the Autumn. It had originally been set for a Spring 2021 publication.
Firms were given a business rates holiday last year to help them ride out the virus crisis, but a number of companies want to see longer term reforms to the business rates system.
A number of high street firms that currently have sites closed for the latest lockdown, are hoping Chancellor Rishi Sunak will extend the rates holiday. It is due to finish at the end of March.
The fundamental review of business rates was announced by the Chancellor at last year’s Budget.
A call for evidence was published in July last year to seek stakeholders’ views on key issues, including reforming the rates multiplier and looking at alternative ways of taxing non-residential property.
The government is currently considering responses.
An interim report which will include a summary of responses will be published on March 23.
Russell Gardner, EY UK & Ireland head of real estate, hospitality and construction, said: “ With high streets up and down the country in significant need of innovation and rejuvenation, we can only hope that this deferral might be a signal of truly meaningful reform for the post-pandemic era.”
British Chambers of Commerce’s head of economics Suren Thiru, said: “Delivering fundamental change to this longstanding drag anchor on business has become only more pressing in light of Covid-19.”
The British Independent Retailers Association has called on the Government to reveal its decision on business rates relief before the Budget in March.
The organisation wants the Chancellor to extend the business rates holiday for another year - and do so immediately, giving independent retailers as much notice as possible to plan their finances.
Vivienne King, chair of the Shopkeepers’ Campaign, said: “Extending business rates relief would be a lifeline for the embattled high street and struggling shopping centres, and would show that the Chancellor is listening to our plea to support the hard hit retail sector and is prepared to act.”
