Alongside the freezing of the tax rates, the key takeaway for business rates in today\u2019s autumn statement is the abolition of downward phasing.<\/p>\r\n\r\n\r\n\r\n
The Facts<\/strong><\/p>\r\n\r\n\r\n\r\n The business rates highlights in the 2022 Autumn Statement are: \u00b7<\/p>\r\n\r\n\r\n\r\n The Figures<\/strong><\/p>\r\n\r\n\r\n\r\n The Long Read<\/u><\/strong><\/p>\r\n\r\n\r\n\r\n At every revaluation since 1990, governments have capped increases in liability for the revaluation\u2019s \u201closers\u201d by charging a surcharge to the revaluation\u2019s \u201cwinners\u201d.\u00a0 In other words, those markets that have been decimated economically and have seen rents fall have been paying a surcharge to cushion the increased liabilities for prosperous areas.\u00a0 This had the unfortunate effect of forcing struggling towns and cities to subsidise the City of London and Bond Street.\u00a0 At long last this has been abolished.<\/p>\r\n\r\n\r\n\r\n For months the team at DWD has been producing budgets for clients\u2019 new openings as the economy recovers post-covid.\u00a0 As the government had failed to provide guidance on the charging rules for the 2023 List the only approach to take has been to assume that the new rules would mirror previous schemes.\u00a0 With September\u2019s CPI inflation running at 10.1%, even if a property\u2019s rateable value is forecast to halve, the business rates liability would have increased by more than 5%.\u00a0 This would have further undermined the credibility of business rates as a tax.<\/p>\r\n\r\n\r\n\r\n The uncertainty was crippling investment decisions in many towns and cities.\u00a0<\/p>\r\n\r\n\r\n\r\n We now have the certainty of knowing the liability will follow current values, rather than being pinned to rental levels agreed more than 8 years ago.\u00a0<\/p>\r\n\r\n\r\n\r\n This announcement will unlock a considerable amount of investment in the high street.<\/p>\r\n\r\n\r\n\r\n\r\n
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\r\n Upward Caps<\/td>\r\n 2023\/24<\/td>\r\n 2024\/25<\/td>\r\n 2025\/26<\/td>\r\n<\/tr>\r\n \r\n Small\u00a0 (RV up to \u00a320k or \u00a328k in London)\u00a0<\/td>\r\n 5%<\/td>\r\n 10%<\/td>\r\n 25%<\/td>\r\n<\/tr>\r\n \r\n Medium\u00a0 (RV greater than small to \u00a3100k)<\/td>\r\n 15%<\/td>\r\n 25%<\/td>\r\n 40%<\/td>\r\n<\/tr>\r\n \r\n Large (RV greater than \u00a3100k)\u00a0<\/td>\r\n 30%<\/td>\r\n 40%<\/td>\r\n 55%<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<\/figure>\r\n\r\n\r\n\r\n \r\n