Chancellor brings forward business rates revaluation

The next business rates revaluation has been brought forward by one year to 2021, chancellor Philip Hammond announced in the Spring Statement on Tuesday.

Future revaluations will take place every three years from 2021, he added.

Hammond also announced a call for evidence on how the tax system can be used to encourage the responsible use of plastic, in order to “deliver on our vow” to deal with the issue of plastic waste.

The government wants to look broadly across the whole supply chain, from production and retail to consumption and disposal, the consultation document states.

He also reaffirmed that the National Living Wage will rise from £7.50 to £7.83 from April 1, while the tax-free allowance will rise to £11,850.

Welcoming the business rates announcement, Association of Convenience Stores chief executive James Lowman said: “Business rates are one of the biggest fixed costs for thousands of convenience retailers in the UK, many of which have seen significant increases in their rates bills as a result of the delayed last revaluation.

“We welcome the chancellor’s plans to bring forward more frequent revaluations to 2021 and VOA led assessment. We will continue to call on government to change the way that the business rates system deals with investment in stores. We need a business rates system that incentivises investment instead of discouraging it through higher rates bills.”

On the call for evidence on plastic reduction, he added: “We will continue to work with Defra and other government departments on ways that the convenience sector can play a part in the reduction of single use plastics, and will respond to the consultation.”