UK Budget 2018 – Business Rates Update

The Chancellor announced this week that the Business Rates are to be cut by one third for 2 years from 01/04/2019 for all Retailers in England with a Rateable Value of £51,000 or less.  The Government estimate that this will deliver an annual saving of up to £8,000 for up to 90% of all independent shops, pubs, restaurants and cafés.

The Government have confirmed to us that Petrol Stations will be regarded as Retail properties.  This definition will follow the format of the Retail Relief previously introduced temporarily back in 2013 – it therefore seems likely that other features from that time will also apply, i.e. that the saving will be a relief that requires individual application to Billing Authorities.

However, the small print discloses that the saving for each company will be subject to EU State Aid limits (currently €200,000 at the current exchange rate over a 3 year period), and will therefore be capped for any occupiers with multiple properties.  The State Aid limit will also include any 2017 Revaluation discretionary reliefs allocated by local authorities in 2017/18 and 2018/19.

We are not expecting the State Aid limit to automatically end with Brexit, regardless of the outcome.