High streets face £3bn rates rise on 1 April
A lower discount and much smaller cap on help will see the cost of the support half from £5.76bn during 2021/22 to £2.66bn for 2022/23
Hospitality, leisure and retail businesses in England are facing a “dangerous cost of doing business crisis”, according to real estate adviser Altus Group, as the government presses ahead with its £3.1bn business rates rise on 1 April.
Analysis by Altus Group, following yesterday’s (23 March) Spring Statement, shows councils in England estimate business rates income from 1 April for 2022/23 will be £22.57bn after all reliefs, accounting adjustments and sums retained outside the rates retention scheme are taken into consideration.
Altus said this represents a 17% increase in business rates income on the £19.29bn expected to have been collected, across all sectors, in England during 2021/22 financial year which ends on 31 March.
During the pandemic, occupied retail leisure and hospitality premises received a 100% business rates discount during 2020/21 and for the first three months of 2021/22, with then a 66% relief for the remaining 9 months up to a total value of £2m per business.
However, from 1 April 2022, this will be replaced by a new relief for eligible retail, hospitality and leisure properties with smaller 50% relief on rates bills but capped at £110,000 for larger businesses.
Altus added that this lower discount and much smaller cap on help will see the cost of the support half from £5.76bn during 2021/22 to £2.66bn for 2022/23 costing high street businesses an extra £3.1bn in tax.
Robert Hayton, UK president at Altus Group, said high street firms were facing a “dangerous cost of doing business crisis which could derail the recovery from the pandemic” citing “lower rates relief, increased employment costs, surging gas and electricity bills as well as other increased operational costs”.
