Budget 2017 – Hammond Announces 3 measures amounting to paltry £435m Cut to Business Rates
The Chancellor has stated that Business rates raise £25bn of revenue per year, so they cannot be abolished.
Mr Hammond says he wants the business rates system to be fairer. The government will set out plans and set out its preferred approach before the next revaluation, consisting of three measures.
- Any business coming out of small business rate relief will benefit from an extra cap – meaning their rates will increase by no more than £50 a month.
- There will be a £1,000 discount on business rate bills for all pubs with rateable value of less than £100,000 – 90% of all pubs.
- A £300m fund will be made available to councils to allow them to provide discretionary relief.
- The Chancellor claims this amounts to a £435m cut in business rates. This is still a drop in the ocean and does not address the severe challenges faced by business across the UK.