People affected by the Chancellor’s tax changes announced in the Autumn Budget are pleading for relief offered to some to be extended
The Chancellor’s Autumn Budget launched significant tax changes due to increase certain taxes as well as confirming the current 40% discount on offer to some will be removed in April. The planned tax changes will be rolled out in phases over three years with the Treasury confirming ‘significant transition relief’ as some call out for support.
The Treasury announced that new property valuations will be used for 2026, potentially increasing the commercial property tax for countless firms. At the same time, the 40% discount for retail, hospitality and leisure firms will end in April.
Criticisms about the rises have spurred the government to create specific support for pubs facing increased business rates. However, UK hotel chains and holiday parks have pleaded for the support to be expanded across the sector.
Following these calls, Conservative MP Joe Robertson questioned whether the Chancellor had any plans to extend business rates relief to retail businesses.
Dan Tomlinson confirmed that the Government would be providing a support package worth £4.3billion over the next three years and that this would include protection for those who are watching their bills rise due to the revaluations.
The Labour MP noted that because of this support, “over half of ratepayers will see no bill increases”. He also claimed 23% of ratepayers would actually see their bills decrease.
Those facing increases can also expect to have the rises capped at 15% or less next year.
He wrote: “The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency and the multiplier values, which are set by the Government.
“RVs are re-assessed every three years. The most recent revaluation took effect from 1 April 2023 and was based on values as of 1 April 2021. The next revaluation will take effect from 1 April 2026 based on values of 1 April 2024.
“At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties, including those in the hospitality sector as they recover from the pandemic.”
“To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation.
“As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.”
