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

A story of smarter SEND funding

By Natalie Kenneison | 05 June 2025

Natalie Kenneison says that despite soaring SEND deficits, a quieter story of progress is unfolding that shows what’s possible when councils take a structure...

WHITEHALL

The cap doesn't fit

By Justin Griggs | 05 June 2025

Capping some or all parish and town councils would seriously threaten their effectiveness and undermine the broader agenda of devolution and community empowe...

WHITEHALL

Councils told cuts will follow

By By Martin Ford | 05 June 2025

Councils have been warned to brace for grant cuts after next week’s Spending Review despite deputy prime minister Angela Rayner’s attempts to shield the sector.

WHITEHALL

Standing up for scrutiny

By Ann McGauran | 04 June 2025

Jo Armstrong of the Accounts Commission talks to Ann McGauran about why councils north of the border have kept on balancing their budgets, the Barnett fundin...

Ann McGauran

Popular articles by Ann McGauran