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

Cherishing the value of public libraries

By Ivan Wadeson | 03 August 2026

Ivan Wadeson reflects on the importance of championing and cherishing libraries and what the new government leadership might mean for these crucial community...

WHITEHALL

How data and community voice are shaping Luton's climate future

By Leonie Taylor | 03 August 2026

Senior researcher Leonie Taylor shares her experiences of The Young Foundation’s work with Luton BC, mapping a fair path to net zero.

WHITEHALL

A mayor's journey shows why councils are essential partners in government

By Shabnum Mustapha | 30 July 2026

Shabnum Mustapha says Burnham’s mayoral experience highlights councils’ vital role in delivering national priorities.

WHITEHALL

Finding a permanent solution to a temporary problem

By Rebecca Davis | 30 July 2026

Using the results from a recent service set up in the West Midlands, Rebecca Davis reveals how collaborative regional recruitment can empower councils to red...

Ann McGauran

Popular articles by Ann McGauran