Chancellor Philip Hammond delivered his final Spring Budget today, identifying a further £435m cut in business rates and that the government intends to consult on reforms to the business rates revaluation system before the next revaluation in five years’ time.
Reacting to today’s announcement, David Jones, Senior Director, Business Rates at GVA comments:
“The chancellor has simply not listened to the majority of business facing significant uplifts from the 2017 revaluation. Pre budget GVA laid out a strong case for the government to find £1.75 billion to help alleviate business concerns. This was principally through capping liability increases for all business to revert back to no higher 12.5%, rather than the current cap of 42%. However The Chancellor only committed to cut business rates by an additional £435 million through targeting small business, pubs and specialist hardship cases.
“Pre Budget hype promised more from the Chancellor. He has not listened. For a tax system to impose on the worst affected a 42% increase in their liability and so clearly differentiate between small and all other businesses, is in our view inequitable. The devil will be in the detail as to the rules for distributing the hardship fund. However we have real concerns as to whether local authorities will fairly distribute the additional £300 million hardship relief fund. We simply don’t believe that relief in a tax system be based on those that shout loudest.”
For more information, please contact David Jones at GVA on 0207 911 2389 or firstname.lastname@example.org