Last Updated on: 22nd November 2023, 04:35 am
The 2023 Rating List, which came into effect in April, proposed a business support package of almost £14 billion to help business owners and leaders with their business rates. In November 2022, Chancellor Jeremy Hunt announced that part of this package would include freezing the multiplier, which was at its highest level since it was introduced.
The government published their findings a few weeks after the announcement, which included an expected national increase of Rateable Values (RV) in England and Wales of just over 7%. This figure does not take into account the frozen multipliers, pushing the increase in business rates to a national average of around 14%.
Anthony Hughes of RVA Surveyors commented: “The 2023 rating list proposed a huge shift in how commercial property owners and tenants needed to look at their business rates liability. The political and economic climate of 2022 had a massive influence on what support for businesses would become available, and to their longevity.”
Whilst the Retail, Hospitality, and Leisure (RHL) relief was increased to cover 50% of a property’s business rates in 2022, the deadline for this relief is 31 March 2024, with no replacement currently planned.
Charles-Henry Monchau, CIO at Bank Syz, warned that inflation has acted as a red flag to a bull, to many larger companies, to increase prices excessively higher than inflation demanded.
Overall, businesses are struggling with increased overheads, lower turnovers and tight budgets, and many are beholden to their consumers who are also feeling the strain.
The 2023 Rating List has had a significant effect on business rates, leaving many business owners and leaders struggling. With the support package gradually being reduced, businesses will ultimately be expected to bear the full brunt of their business rates liability.
