What a Relief
The property sector had hoped for a significant adjustment to the business rates transitional relief. There was a change – but it was not significant. The change is from a 45% to a 43% cap on rates increases in Year 1, followed by a reduction in the second year’s cap from 50% to 32%. Otherwise put, if the business rates increase is not greater than 43%, then there is no benefit to this measure. This will be the case for much of the UK. Even somewhere like the City fringe, where the rates increase might be as high as 80%, the impact of the adjustment is just 0.2% of the nominal 5-year cashflow. Not very exciting.