ACS (the Association of Convenience Stores) has welcomed the Chancellor's announcement in today's Autumn Statement on reform of the business rates system. During his Statement, the Chancellor announced the following measures as taken from the Autumn Statement document:
- Long Term Reform: The government will conduct a review of the future structure of business rates by Budget 2016. The review will be fiscally neutral and consistent with already agreed financing of local authorities. The government will publish its interim findings in December 2015.
- Retail Business Rate Discount: The government will be providing additional support for the retail sector by increasing the retail business rates discount for the retail sector with a rateable value of £50,000 or below, to £1,500 for a year from 1 April 2015. This will benefit an estimated 300,000 businesses.
- Annual Cap on Rates: The Chancellor has announced that the government will be extending the 2% cap on the Retail Price Index increase in the business rates multiplier to April 2016.
- Small Business Rate Relief Extension: The Chancellor has announced further support for small business by extending the doubling of Small Business Rate Relief for a further year to April 2016. This means that an estimated 385,000 small businesses will continue to receive 100% business rate relief, with another 190,000 businesses benefiting from partial relief.
ACS Chief Executive James Lowman said: “We are delighted that the Chancellor has listened to our concerns on business rates by committing to a full review. Local shops will welcome the 2% cap on rates increases and the extension of the higher threshold for small business rate relief, alongside the increased £1,500 rates discount for shops on the high street. We are committed to rates reform that works for local shops and will play a full part in the review in the coming months.”
