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

There's no diluting diversity

By Emily Twinch | 09 December 2025

Reform UK leader Nigel Farage made it clear: he sees no need for dedicated diversity staff. Emily Twinch investigates whether councils that fell under Reform...

WHITEHALL

What does the Epping 'asylum hotel' High Court case mean for councils and planning departments?

By Ben Standing | 08 December 2025

After a council’s attempt to block asylum seekers from staying at a hotel was thwarted by the courts, Ben Standing explains what this means for local authori...

WHITEHALL

Budget: The effects on combined and strategic authorities

By Tiffany Cloynes | 05 December 2025

Tiffany Cloynes looks at at the financial implications of the Budget for combined authorities and strategic authorities. She says that while the introduction...

WHITEHALL

Don't let lack of cash fail Total Place 2.0

By Heather Jameson | 04 December 2025

Reeves was never going to magic up a solution to public sector funding woes in the Budget, 'but there was barely a trick', says Heather Jameson.

Ann McGauran

Popular articles by Ann McGauran