Helping you prosper

50% business rates relief welcome news to dealers

Business rates have been a significant cost borne by physical retailers for many years. It has been argued, not without reason, that a major reform of the business rates system is required to ensure a more level playing field between physical and online retailers. With rates bills typically reflecting around 50% of rents paid the sums are eye watering and overly impact on costly retail premises in prime locations. For many of my automotive retail clients, particularly those in the more expensive South East, these costs run to in excess of £100,000 per site and make a huge dent into the profits that can be generated. Today’s budget announcement confirms that sadly major reforms are not planned, with some tweaks to encourage investment particularly in energy efficiency being the main long term changes.  

Of greatest interest to those in the retail, leisure and hospitality sectors is the provision of a 50% relief for businesses in the 2022/2023 year subject to a maximum of £110,000 per business. Whilst the detail is still to be examined, this seems on the face of it to be a welcome extension to the already generous Covid-19 related reliefs provided and will help ensure these hard hit businesses have additional time to fully get back on their feet.

The next step

For more information on discounted business rates, please get in touch with Paul Daly or your usual UHY adviser.

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