Fed Raises Concerns about Business Rate Changes

The Fed is calling on the Government to act to control the Business Rates Bills of small independent retailers after the Budget proved disappointing for small shops, creating uncertainty and concern following. This follows action by the Government to benefit pubs and the Fed is calling on the Government to also help shops.

Hetal Patel said: “The Fed raised concerns about the impact of the Budget on the day it was announced as Small Business Rates threshold was frozen, the Retail Hospitality and Leisure multiplier was less than it could have been and the three-yearly Rateable Value revaluation was taking effect. We continue to raise awareness of this matter with our members and urge them to check their bill with their local authority.

Patel added: “The Fed has sympathy for pubs who have recently been offered extra protection from rising rates by a recent Government announcement following mistakes in the Budget but feels that small independent shops are also important social economic focal points in the community and want the Government to carefully monitor the impact of the changes on small retailers and do more to help them control their costs.”

Although some Fed members affected have protection from Rates Bills because of Small Business Rates Relief offering 100% protection now up to £12,000 per annum by rateable value, we are worried fewer will benefit as the Revaluation on properties – which takes place every three years and last occurred in April 2023 -will push some above this value. Meanwhile, more valuable properties currently benefiting from the 40% Retail, Hospitality and Leisure Relief, introduced during the pandemic, will lose out, with multipliers cut but not enough to counteract the loss of relief. The Fed has welcomed the £3.2 Billion transitional scheme and the extended Supporting Small Business scheme, the Fed continues to have concerns about Bills going up, as it looks likely that revenue from rates will rise overall, impacting shops as well as other businesses, like those in hospitality.

For more information on this matter, please contact the Fed’s Political Engagement Coordinator on: douglas.oliver@nfrn.org.uk