Government to look at business rates – in 2016
The government will look at the future of business rates, but not until 2016 at the earliest, George Osborne announced in his Autumn Statement.
'The government will conduct a review of the future structure of business rates to report by Budget 2016. The review will be fiscally neutral and consistent with the government's agreed financing of local authorities. The government will publish terms of reference in due course,' he told the House of Commons.
Retailers have long campaigned for an overhaul of the rates system, arguing it is outdated and too expensive.
The Chancellor also announced an increase in business rates discount for retail premises with a rateable value of £50,000 and below to £1,500; the extension of the doubling of Small Business Rate Relief for a further year from 1 April 2015; the continuation of the 2% cap on the RPI increase in the business rates multiplier for an additional year and an extension of the transitional arrangements for properties with a rateable value of £50,000 and below facing significant bill increases.
'The Federation of Small Businesses is delighted to see the double small business rate relief remain for another year and a full review of the outdated business rates system, something we've long argued for,' says John Allan, FSB chairman.