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The Spending Review documents state that the freeze will ‘save businesses in England £575m over the next five years’ and that ‘the government is also considering options for further Covid-19 related support through business rates reliefs.
In order to ensure that any decisions best meet the evolving challenges presented by Covid-19, the government will outline plans for 2021-22 reliefs in the New Year.’
The ACS welcomed the news and called on the government to act soon to announce further details of business rate reliefs available to businesses next year.
ACS chief executive, James Lowman, said: “This is good news in that it reduces the extent to which business rates bills may increase in April 2021, but the businesses that have suffered during the Covid crisis can’t be expected to go back to paying full business rates in the next financial year. The government’s plans for rate relief in 2021-22 are going to be very important and we need to hear effective measures as soon as possible in the new year.”
John Webber, head of business rates at Colliers International, called the announcement “desperately disappointing”.
He said: “The chancellor said this review was all about ‘jobs, jobs, jobs’, but has forecast that, despite the measures he has revealed, the UK will see 2.6 million unemployed by Q2 next year. It is incomprehensible how he can say that on one hand, but then ignore the cries of crucial sectors of our economy, particularly the retail and leisure/hospitality sectors, who need clarity over whether they will facing massive business rates rises again in April next year, once their Covid-19 business rates holiday comes to an end.
“It’s also worrying that the chancellor has not mentioned a timeline for when he will announce on the Rates issue. Although the statement today was not a tax review, it is inconceivable if he feels he can wait until the March Budget to discuss changes to the business rates system. By then many retailers will have made their plans for the forthcoming year and many of these will include closures and job losses in anticipation of the big bills coming through the letterbox.”
