The Budget was announced to the House of Commons on Wednesday 27 October 27, 2021.
One of the measures announced by Rishi Sunak included a 50% discount on business rates for the next year (2022-23), with a maximum deduction of £110,000.
The Treasury has confirmed the following details about the cap:
The £110,000 is a cash cap, setting the limit of cash relief any business can receive at £110,000
There is no Rateable Value (RV) cap, so any property is eligible to apply for relief, subject to the cash cap detailed above
The £110,000 cash cap is a cap per businesses, rather than per property
The Treasury said that ‘the percentage of relief available in the last retail, hospitality and leisure discount scheme – for properties not effected by the cash cap of that scheme – the rate of relief averaged out at 75% (with a 100% holiday for Q1 2021-22 and 66% for Q2-4 2021-22)
‘In contrast, for the 2022-23 scheme, up to 400,000 retail, hospitality and leisure properties could be eligible for almost £1.7bn of business rates relief.
‘Eligible properties will receive up to 50% off their bill, subject to a £110,000 cash cap per business. More than 90% of retail, hospitality and leisure businesses will receive at least a 50% reduction in their business rates bills in 2022-23 when taken together with Small Business Rates Relief.
‘This relief is worth more than double the relief that was announced pre-Covid-19 for the 2020-21 financial year as a result of removing the rateable value threshold and extending the support to many more hospitality and leisure businesses’.
Andrew Goodacre, Bira CEO, said: “Ahead of the Budget, we asked for the amount of discount to be increased to include more businesses. Now we have clarification of the rules, we can see that Treasury listened to us and we are pleased that many more indie retailers can benefit from this discount.”