Home Insurace – Business Rates & Valuations Limited

Upcoming Changes to Business Rates in 2024

What Businesses Need to Know

In the UK, 2024 budget changes to business rates will affect costs for both small and larger enterprises. Key adjustments include:

Multiplier Rates

Small Business Multiplier: The government will freeze the small business rates multiplier at 49.9p for properties with a rateable value below £51,000, limiting tax increases for many small businesses.

Standard Multiplier: For larger properties, the standard multiplier will rise by 6.7% to 54.6p, reflecting inflation rates. This will increase business rates for larger properties, particularly impacting sectors like retail, hospitality, and pubs that are sensitive to such cost hikes.

Retail and Hospitality Relief

Eligible retail properties will continue to receive a 75% discount on business rates, capped at £110,000 per business. However, starting in 2024, hospitality and retail sectors will see their relief reduced from 75% to 40%, raising costs for shops, cafes, restaurants, and similar establishments on the high street. These businesses may face significant challenges, especially with concurrent multiplier increases in some regions, potentially affecting profitability and even business viability.

Additional Measures and Temporary Reliefs

New provisions include temporary reliefs for empty properties and incentives for improvement investments, which may provide some financial flexibility. More frequent revaluations, occurring every three years, will also be implemented to align rateable values more closely with market conditions, meaning businesses may see adjustments to rates more regularly.

Implications for Small vs. Larger Businesses

Small Businesses

With the small business multiplier frozen, smaller businesses will experience limited rate increases, offering some stability.

Larger Enterprises

Larger properties, especially in retail and hospitality, are likely to face higher rate bills. These sectors are raising concerns about the additional financial burden amidst inflation and slow consumer spending.
For many high-street businesses, the combination of a reduced retail relief rate and rising multipliers could lead to increased costs, with potential effects such as price adjustments, downsizing, or relocations to manage expenses. These shifts may impact the vibrancy and diversity of high-street locations.

“

Business Rates & Valuations

How Business Rates & Valuations Ltd Can Help

Navigating these changes can be challenging. Engaging an agent like Business Rates & Valuations Ltd ensures accurate understanding and potential reduction of liabilities. As specialists in business rates, we help businesses by:

Accurate Valuations and Appeals: Ensuring correct valuations and handling appeals to minimize overpayment.

Strategic Advice

Offering expert guidance on navigating rate changes, relief reductions, and the impact of property revaluations.

This expertise is crucial as businesses manage the dual challenges of reduced reliefs and multiplier adjustments, both of which directly affect rate liabilities. For tailored advice and support, please contact Business Rates & Valuations Ltd.