The Budget and Business Rates – what it means

Today’s Autumn Budget has delivered some seismic announcements that amount to a further £40bn in taxation for businesses and individuals to absorb.

Business rates did not escape mention – several mentions in fact – with implications for any businesses with premises and another hit for the private schools’ sector.

Here’s a summary:

  • Business Rate Multipliers for 2025/26 – the small business multipler in England will be frozen at 49.9p and legislation introduced to freeze the Small Business Multiplier. The Standard Multiplier will be uprated by the September 2024 CPI rate to 55.5p.
  • Retail, hospitality and leisure businesses for 2025/26 will receive 40% relief on their business rates liabilities. There will be a cash cap of £110,000 per business.
  • The Government intends to introduce permanently lower multipliers for retail hospitality and leisure properties from 2026/7. This will be paid for by a higher multiplier on properties with an Rateable Value of £500,000 and above.
  • Charitable Rate Relief will be removed from Private Schools. This legislative change will take place as from April 2025, subject to the Parliamentary process. Private schools which are “wholly or mainly” concerned with providing education to pupils with an Education, Health and Care Plan will remain eligible for relief.
  • A discussion paper is to be published looking at Business Rates’ Reform, inviting industry to comment and participate on the “direction of travel”. The details can be found here: pdf with rating agents, businesses and local authorities invited to participate. Submissions can be made between November 2024 and March 2025. For those who would like to be part of the process, contact: transformingbusinessrates@hmtreasury.gov.uk
  • The Valuation Office Agency is to publish a response to the March 2023 Consultation of Disclosure which sets out the next steps to increase transparency of business rates’ valuations.

Anyone concerned about how these changes or proposals affect their business can contact the Dunlop Heywood team for a no-obligation/no fee review at info@dunlopheywood.com.