Osborne announces business rates review in Autumn Statement

After days of speculation, Chancellor George Osborne has given this year’s Autumn Statement to the Commons.

Key in the announcement is the revelation that a full review of the current business rates system will be carried out.

The current system in England has been in place since 1988, but has been heavily criticised for the varying rates charged to businesses.

The system will go through a “complete structural review”, but is not expected to fundamentally change the values firms pay.

However, the Confederation of British Industry (CBI) responded that the changes would be “a shot in the arm” to growing businesses.

The business body had called for the calculation of business rates to be based on the Consumer Prices Index (CPI) rather than the Retail Price Index (RPI), which is used at present.

Osborne also revealed an increase in the discount available to retailers. Those with properties of a rateable value under £50,000 would have discounts increased to £1,500 next year, indicating a rise of £500. It is expected that this will help around 500 businesses as well as bringing the total relief on business rates to £1 billion.

The 2014 Autumn Statement review further builds on the desire to improve business rates in England. Last year’s statement saw the launch of a review into how councils collect business rates, with its findings due before the end of the year.

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