Chancellor Philip Hammond had two welcome surprises for beleaguered business rates payers in his 2017 budget, according to Paul Easton, national head of business rates at Lambert Smith Hampton.
Responding to widespread criticism since the September announcement that 2018 business rates would rise by 3.85 per cent, Hammond has brought forward the change from RPI indexation to CPI by two years, to 1 April 2018..
Easton explained: “Instead of an increase of 3.85 per cent from 1 April 2018, the multiplier will now increase by 3 per cent, effectively saving ratepayers £2.3bn.”
At the same time Hammond announced more frequent rates revaluations. Business rate revaluations have taken place every five years since 1990, with the exception of the 2010 revaluation, which was extended to seven years. From 2022, revaluations will take place every three years. “The change was called for by many business ratepayers and their advisors and is to be welcomed,” said Easton.