The news comes as business secretary Jonathan Reynolds told The Sun on Sunday the Government’s aim was to lower the “disproportionate tax burden” of business rates in the Autumn budget.
Business rates bills are calculated using a ‘multiplier’ with the rateable value being multiplied by this number to get the final bill.
New approach
This will be part of plans from the Government to introduce permanently lower multipliers for retail, hospitality and leisure (RHL) properties, including those on the high street, The Treasury confirmed.
This new business rates approach will take into account the latest property revaluations as well as the economic and fiscal context.
It is thought the new RHL tax rates will not be limited to a cash cap of £110,000 per businesses.
The Government is to publish an interim report that sets out a clear direction of travel for the business rates system, with further policy details to follow at autumn Budget 2025.
This news comes as pub company Greene King recently called on the Government to make major change to the business rates system.
Pro-business Government
A HM Treasury spokesperson told The Morning Advertiser: “We are a pro-business Government that is creating a fairer business rates system to protect the high street, support investment, and level the playing field.
“To deliver our manifesto pledge and provide certainty and support to the high street, we intend to introduce permanently lower tax rates for retail, hospitality, and leisure properties from next year.
“The tough but necessary decisions we’ve taken on tax mean we could protect working people’s payslips from higher taxes, invest record amounts into the NHS, defence and other public services while keeping bus fares at £3 and expanding free school meals.”
