Business rates relief: extensions and cuts
November’s Autumn Statement included a package of measures to help alleviate the burden of business rates in England and on the Scottish islands, but Wales won’t be so fortunate.
75% relief rules
Retail, hospitality and leisure properties that do not qualify for small business rates relief currently receive a 75% business rates discount, subject to a cap of £110,000 for each business. This relief is to continue throughout 2024/25.
Property will typically qualify for relief if the business is mainly being used as a:
- Shop;
- Restaurant, café, bar or pub;
- Cinema or music venue; or
- Gym, spa or hotel.
There is an equivalent scheme for Welsh retail, hospitality and leisure property, but for 2024/25 the discount has been reduced to 40%. There is no equivalent relief for Scottish or Northern Irish business property. However, Scotland has announced a new 100% relief for hospitality businesses situated on the Scottish islands.
Multipliers
A business rates bill consists of a property’s rateable value multiplied by a multiplier (or poundage). For 2024/25, the small business multiplier (rateable value below £51,000) is again frozen at 49.9p. However, the standard multiplier (rateable value over £51,000 or more) is being uprated by 6.7% to 54.6p.
Given inflation has now dropped to 3.9% (November 2023), the 6.7% increase for the standard multiplier is not going to be favourably received.
- Scotland: The basic multiplier has been frozen, but higher value properties will see poundage increased by 6.7%.
- Wales: The multiplier will see an across-the-board increase of 5%. This will be painful for smaller businesses, especially as the Welsh multiplier at 56.2p is the highest in the UK.
- Northern Ireland: No announcement as yet, and, in any case, rate poundage varies across council areas.
To summarise the various outcomes:
| England- RV below £51,000 | England- RV £51,000 or more | scotland - rv up to £50,000 | Scotland - RV £51,001 to £100,000 | Scotland - RV £100,000 or more | wales | |
|---|---|---|---|---|---|---|
| Retail, hospitality & leisure relief (all subject to a cap of £110,000) | 75% | 75% | 100% (islands only) | 100% (islands only) | 100% (islands only) | 40% |
| multiplier | 49.9p | 54.6p | 49.8p | 54.5p | 55.9p | 56.2p |
Details of the various cuts available in England can be found here.
