Fundamental Review of Business Rates Interim Report 23rd March 2021
Consultation:
more frequent Revaluation
29th June 2021
Final Report Autumn 2021
In the run up to the 2019 General Election the Government promised a fundamental review of business rates, publishing the terms of reference for the review at the Spring Budget in 2020. Views were sought regarding how the system currently works, issues to be addressed and ideas for reform - including an online sales tax. Due to the wide-ranging impact of the pandemic and ongoing economic uncertainty, the Government confirmed that the Treasury’s final report regarding the fundamental review of business rates will be released in Autumn 2021, at a time when the longer-term outlook of the economy and public finances postCOVID-19 will, it expects, become more apparent. The Conservative manifesto pledge promised to permanently cut the overall rates burden but that pledge
was made before the emergence of a global pandemic. Borrowing pushed the national debt to £2.17 trillion at the end of April, around 98.5% of GDP, the highest debt ratio since 1962. This should not result in shelving potential reform. There are fiscally neutral changes which could be implemented to improve fairness and pave the way for a better system in the future. An interim report was published on 23rd March 2020, including a summary of responses to the call for evidence, together with several tax documents and consultations on a wide-range of tax-related issues. On 29th June 2021, plans were announced to cut the cycle of Revaluations of non-domestic properties to every 3 years delivering
upon the commitment made at the 2017 Autumn Budget, whilst launching a further consultation on the trade-offs needed to achieve that. The Welsh Government is also considering a longer-term policy change regarding the length of time between each Revaluation and exploring options for reform.
“It is unclear whether the Chancellor remains committed to reducing the overall rates burden. Indeed, with the increased spending during the COVID-19 restrictions, he may not have the financial headroom to do so.” Mike Dunlevey, BSc Est Man, MRICS Vice President, Altus Group
6
