Budget 2020 – Business Rates Retail Relief Increased to 100%

Retail Association) who have been campaigning for this discount over the last two years.  The Chancellor’s decision in the Budget 2020 to further increase this retail discount to 100% for eligible retailers for one year will undoubtedly help with cash flow and support independent retailers through the coronavirus crisis.  However, it is vital the Government continue to think ahead about the fundamental reform on business rates otherwise there will be a cliff edge for small businesses in 2021. 

With this in mind, bira would like the Government needs to be more ambitious with its new Digital Services Tax to generate more income from the large internet businesses which could be offset against business rates for smaller hereditements as well as reformation of the VOA.

In the short term, bira will be looking for:

• An extension of the 50% discount for businesses with an RV of £51,000 extended past 2021. We are also calling for this relief to be made applicable to the first £51,000 RV of all businnses with RV up to £200,000. This would support those small retail businesses having to deal with very high rates in the South East of England. Relief should be automatically applied and shouldn’t be a burden on the retailer to apply for; and 
• The Government need to reduce the length of its revaluation cycle. This would help the rates keep up with fluctuating rent costs and give retailers a level of certainty.