Business Rates

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London Councils welcomed the second fundamental Business Rates review as an opportunity to address the systemic problems left unresolved by the one concluded in 2016. The outcome of the fundamental review of business rates confirmed 3 yearly revaluations from 2023, a new temporary relief for eligible retail, hospitality and leisure properties for 2022-23, a new 100% improvement relief, and the freezing of the multiplier in 2022-23.

Fundamental reform cannot be delayed indefinitely as the capital’s rate payers contribute an increasingly unsustainable proportion of the national business rates yield. Fixed yield revaluations mean London’s share of England’s rates take is increasing at each Revaluation and, if this continues, we could reach a situation where London has over half of the national business rates base by the early 2040s. This is not good for anyone.

With the rates system being as unsatisfactory from the rate payers’ perspective as it is from the billing authority one, it is unsurprising that both sides continue to demand change. 

London Councils will continue to press for the major reforms to the non-domestic rates system required to make it fit for purpose as a mechanism for ensuring that businesses make a fair and sustainable contribution to funding the local services that enable businesses to thrive. This includes reforms to business rates to make the system less complex and more responsive to local economic conditions through greater local control.

London Councils & GLA's joint submission to the Treasury’s call for evidence to its Business Rates Review