The government has published its consultation document on the revaluation of business rates coming into force from 1 April 2017.
The government claims that the majority of ratepayers will see a small change in their rates while some properties will face a significant change in rates.
Transitional arrangements will be put in place to allow businesses to adjust to their new rates bills.
Main proposals include:
- Businesses facing increases will see their bill capped by 5% for the first year, supported by the transitional relief worth £3.4 billion being phased over the next 5 years
- Transitional arrangement will be self-funded and businesses facing increases must be funded from other ratepayers
- The government will fund the arrangements by limiting annual reductions in bills due for revision
- Proposing a threshold for small properties of less than or equal to £28,000 in Greater London and £20,000 elsewhere. The new threshold for large properties would value above £100,000
- Adjustments to the rate multiplier will allow receipts from business rates to remain constant.
Local government minister Marcus Jones, said:
“We are committed to helping all businesses flourish and as we make the system fairer up and down the country, nearly three quarters of companies will see no change, or even a fall, in their bills – including 600,000 who from next April will have their bills cut altogether.”