With the 2017 Rating Revaluation fast approaching, the government has predicted that Councils across England will make a record-breaking business rates income 2017 total of about £23.5 billion; an increase of about £400 million.

The local government minister, Marcus Jones, attributed the increase to a rise in the number of new businesses across the country, as figures show there are 900,000 more businesses now than in 2010. However, the Confederation of British Industry (CBI) has warned that the burden of rates payments, coupled with the apprenticeship levy and the living wage, could cripple companies over the next five years.

Relief and Support Measures

The government introduced more than £1 billion in support for business rates bills in 2015 to 2016 and has confirmed that the doubling of Small Business Rate Relief will continue into 2016 to 2017. In total, councils already plan to hand out £3.2 billion to charities and businesses through mandatory and discretionary allowances and reliefs.

Future Retention and Local Powers

Under the current rating legislation introduced in 2013, councils in England keep 50% of the business rates income 2017 generates, paying the other 50% to the Treasury. By 2020, this is expected to change to allow councils to keep 100% of the rates they collect. From 2020, councils will also have the power to abolish the uniform business rate (UBR), allowing them to cut rates to stimulate local growth.

Review Your Liability

With this constantly growing overhead, it is even more important to review your current rate liability. If you have not already considered a review or rate ‘check-up’ for the 2017 period, please revert to us.