Business rates revaluation postponed for beyond 2021 in the wake of coronavirus outbreak
A revaluation of business rates will no longer take place in 2021 to help reduce uncertainty for firms affected by the impact of coronavirus, confirmed the government.
The revaluation, a review of the rateable values of all business in England at a particular point in time, was set to take place in 2021 after legislation had been introduced to bring the revaluation forward by one year.
A property’s business rates bill is based on an estimate of the premises’ rental value.
Since the outbreak of coronavirus and the significant impact on businesses, the government has pushed back the revaluation in an attempt to provide a small degree of certainty to businesses wrestling with the coronavirus and lockdown measures.
Communities Secretary Robert Jenrick said: “We have listened to businesses and their concerns about the timing of the 2021 business rates revaluation and have acted to end that uncertainty by postponing the change.
“Now is the time for us to continue to focus on supporting businesses affected by the pandemic, including through our unprecedented package of almost £10 billion in business rates relief.”
In the Budget, a business rates holiday was announced to help retailers with the impact of the coronavirus. Additionally, a review of the current business rates system is set to be published in the autumn.
According to the government, work is continuing to examine how the business rates system works, with many in the mobility retail sector highlighting that the current system disproportionately impacts bricks and mortar sellers compared against their internet-only counterparts.
The aim of the business rates review will be to reduce the overall burden on businesses and to implement fundamental changes in the medium- to long-term, says the government.
