Title

WHITEHALL

Budget 2018: Rates cut for high street

Business rates for small high street retailers in England will be cut by one-third over the next two years, the chancellor Philip Hammond has announced.

Business rates for small high street retailers in England will be cut by one-third over the next two years, the chancellor Philip Hammond has announced in his Budget.

The changes to business rates are part of a £1.5bn effort to revitalise the high street, which Mr Hammond said was 'under pressure as never before as Britain adopts online shopping'.

Whitehall will provide £675m of co-funding into a Future High Streets Fund to support councils to transform these areas, which he described as the 'heart of communities'.

The fund will support the funding of a new High Streets Taskforce to provide expertise and hands-on support.

Mr Hammond said: 'The change that high streets face is irreversible.

'Many small retail businesses are struggling to cope with high costs of business rates.'

Rateable values had been expected to change to reflect changes in rental values in April 2021.

But Mr Hammond called for immediate change, announcing that all retailers in England with rateable values of up to £51,000 would benefit from cuts of around 30%, which could lead to annual savings of up to £8,000 for 90% of independent shops, pubs, restaurants and cafés.

The British Retail Consortium welcomed the 'temporary support being given to small businesses' but warned these measures alone would not be enough for high streets to recover.

Fears that the rate relief would come out of local government's share of business rates were today dismissed by Smith Square.

Local Government Association chairman Lord Porter told The MJ: ‘If it does [come out of local government's cut of business rates] it's a major departure from what we've agreed in the past.'

WHITEHALL

Greens pledge to revive high streets

By William Eichler | 23 April 2026

The Green Party has announced a policy platform aimed at reviving high streets, including using local authority powers to bring empty shops back into use.

WHITEHALL

Why CfGS is needed now more than ever

By Ed Hammond | 23 April 2026

As Ed Hammond departs for pastures new, the Centre for Governance and Scrutiny’s deputy chief executive reflects on 17 years at the centre – and how governan...

WHITEHALL

Restoring the third pillar of local authority finance: citizen investment

By Karl Harder | 23 April 2026

Karl Harder looks at the benefits of citizen investing.

WHITEHALL

How we delivered the Youth Investment Fund in Blackburn with Darwen

By Imran Akuji | 21 April 2026

Delivering the Youth Investment Fund in Blackburn with Darwen required a deliberate shift in the council’s role from lead applicant to system steward, says I...

Ann McGauran

Popular articles by Ann McGauran