1 November 2024
Business Rates: Government Autumn 2024 Budget
Business Rates, Commercial, Industry News, SHW News
Retail, Hospitality and Leisure Scheme
The importance of reviewing your business rate accounts prior to April 2025 cannot be understated.
The Transforming Business Rates Discussion Paper published on 30 October 2024 indicates the Government’s intention to effectively phase out the Retail, Hospitality and Leisure (RHL) Relief Scheme in due course, which has otherwise been continued year on year since Covid.
During the Autumn Budget, the Government announced the RHL scheme has been extended for April 2025-26, however, relief for eligible occupiers under the RHL scheme will see relief reduce from 75% to 40%, with the cash cap remaining at £110,000 per business.
This is seen by the Government as an interim measure, as from April 2026-27, the Government’s intention is to introduce permanently lower rates multipliers for retail, hospitality and leisure properties with a Rateable Value of £500,000 or under.
The Government’s proposal is to fund this by introducing permanently higher rates multipliers for properties with a Rateable Value of £500,000 or above from April 2026-27 further stating that this “includes the majority of large distribution warehouses including those used by online giants”.
The reduction in RHL relief from 75% to 40% will impact eligible occupiers from April 2025-26. A proactive approach should be taken ensure business rate accounts are efficiently managed and eligible reliefs are reviewed in line with the Governments proposed changes. In particular, eligible rate payers with portfolios across multiple sites should take the time to review how these changes will impact them prior to April 2025.
Occupiers with Rateable Values in excess of £500,000 should also take the time to review and understand how these changes will impact them in the longer term.
SHW’s Rating specialists are on hand and can assist in reviewing your business rates accounts and take recommended actions on your behalf in light of the Governments recently announced changes to ensure the impacts are minimised.
For more information, please contact;
Harry Pleece
01293 441 323
07714 690 429
