Jessica Harris discusses the government failing to provide business rates relief for those outside of the retail, leisure and hospitality sectors in Property Investor News

Jessica’s article was published in Property Investor News, 1 November 2021, and can be seen here.

Jessica Harris, Associate in our Commercial Property department, reflects on the Autumn Budget 2021, which left many commercial property owners outside the retail, leisure, and hospitality sectors feeling overlooked. Despite the severe financial strain these businesses faced during the pandemic, the government failed to extend targeted business rates relief to them.

While retail, leisure, and hospitality firms received over £16 billion in support and were granted a further 50% discount for one year, more than 400,000 office occupiers continued to pay full business rates, amounting to £7.89 million over 16 months. The promised £1.5 billion relief fund, intended to replace the right to appeal business rates, remains inaccessible due to parliamentary delays and is widely considered insufficient, covering only a fraction of the estimated £5 billion in appeals.

The Budget’s limited reforms, such as moving to a three-year revaluation cycle from 2023 and introducing a temporary ‘business rates improvement relief’ for green investments, were seen as inadequate.

Industry leaders and trade groups have called for a radical overhaul of the business rates system, which they argue is outdated, uncompetitive, and a barrier to investment. With UK property taxes significantly higher than those in other major economies, and online retailers contributing disproportionately little despite their growing market share, there is mounting pressure on the government to introduce an online sales tax to level the playing field.

Without meaningful reform, the burden on bricks-and-mortar businesses may continue to stifle recovery and growth across the commercial property sector.

Read the full article on the Property Investor News website [subscription required].