New bill to ‘modernise’ business rates system

A new bill introduced yesterday is intended to modernise the business rates system by incentivising property improvements and supporting more frequent revaluations.

The measures being put forward would review and reform business rates in England, making them “fairer” and “more responsive to changes in the market”.

The Non-Domestic Rating Bill will introduce more frequent valuations, to take place every three years instead of five. It will also provide new business rates improvement relief, so businesses making qualifying building improvements will not face higher business rates bills for 12 months.

Local government minister, Lee Rowley said: “The introduction of our Non-Domestic Rating Bill seeks to deliver the reforms announced during our Business Rates Review.

“We are bringing the administration of the tax up to date, and making the system more responsive to changes in the economy and introducing new support to reduce barriers to business investment.

“This is another step in the right direction for making sure the UK continues levelling up and supports businesses to grow and flourish.”

Victoria Atkins, financial secretary to the Treasury, added: “I want businesses to know that the government is on their side. Businesses have asked for changes to the business rates system and we are acting, including with more frequent revaluations to make the system fairer and more responsive.

“And they come on top of £13.6 billion of business rates support which resets the balance between bricks and clicks businesses, helping our much-loved high streets and communities.”

The bill has been informed by the business rates review, which ran from July 2020 to October 2021. It has been introduced in parliament and will be debated "in due course".