Autumn Statement - PwC comments on business rates support

Phil Vernon, head of ratings at PwC, says:

“The Chancellor has correctly identified that one of the core issues with business rates is that the tax rate is too high and so freezing the rates multiplier in 2023/4 and the introduction of a package to reduce the burden will be welcomed by many businesses. However, these announcements will have to dovetail with the effects of the revaluation next year, and so properties facing an increase in their rateable value will still see an increase in their rates bills.

“This package continues the focus on retail, leisure and hospitality businesses relief, upping the relief to 75% of rates payable. But with the relief being capped at £110,000 per business, larger retailers and other sectors will be facing full business rates bills.

“Confirmation that the rates revaluation will proceed alongside a transitional relief scheme that will focus only on those rate bills that are increasing, will provide some reassurance that the highest rises in business rates will be curtailed. But as with all revaluations we will see winners and losers. The new rateable values for 2023 are due to be released imminently and so we should soon have a much clearer idea of the effect on business from next year.”