As we approach the highly anticipated Autumn Budget on October 30, 2024, businesses are keen to understand what changes may come regarding business rates. At Commercial Property Advisors (CPA), we have specific expectations and hopes for clarity on several critical issues, especially with business rates being such a pivotal cost factor for many companies.
Duty to Notify: April 2026 Implementation
One significant upcoming change is the duty to notify, scheduled to come into force in April 2026. This new obligation will require businesses to inform the authorities of any material changes that could affect their rates liability. We expect the Budget to address how this will be enforced, ensuring that businesses are prepared for the procedural and administrative changes ahead. This could have far-reaching effects on how businesses plan and forecast their finances.
Increasing Pressure from Retailers for Business Rates Cuts
The call for business rates reform grows louder, particularly from retail giants such as Tesco, M&S, and IKEA. In a coordinated effort with the British Retail Consortium, over 70 retailers have urged the government to introduce a 20% cut to business rates, warning that the current tax burden could lead to widespread store closures. This adds additional pressure on the Chancellor to take action, with these companies highlighting the disproportionate impact of business rates on their sector. The upcoming Budget will be crucial in addressing these concerns and preventing further strain on the UK’s retail landscape.
At CPA, we understand the importance of business rates relief for businesses of all sizes and will be watching closely to see how the government responds to this growing demand for a fairer system.
Business Rate Multipliers: A Key Area for Action
CPA is calling for a clear stance on both the small business multiplier and the standard multiplier, which directly influence the financial health of businesses across the UK. Adjustments to these multipliers are crucial, especially for smaller enterprises trying to manage overhead costs. The association expects the government to clarify how they plan to recalibrate these multipliers, which have a tangible effect on businesses’ bottom lines.
A Call for "Fundamental Reform" of Business Rates
For years, the government has talked about a “fundamental reform” of the business rates system, a promise that featured prominently in Labour's election manifesto. With the new government having had over a decade in opposition, businesses now expect more than just promises—they want concrete plans for long-term reform. We urge the government to provide clear, actionable details on their roadmap for reform, ensuring that the system is fairer and supports business growth.
Long-Term Vision and Immediate Actions
While long-term reforms are necessary, businesses need immediate solutions too. With only three weeks left until the Budget, CPA believes that a commitment to these key adjustments would signal the government's support for British businesses, particularly in a challenging economic environment.
We're watching closely, alongside countless other businesses, for updates and specific measures that will help navigate the current landscape. The business community hopes for a Budget that offers not just relief but a clear path to a more sustainable and competitive future for UK businesses.
With the Chancellor's announcement just weeks away, business leaders are hoping for decisive actions to ease their burden and provide a framework for growth and investment.