Business rates increase announced for 2020/21
The September CPI has been announced at 1.7%, which affects calculations for business rates in the 2020/21 financial year.
This inflation rate would give a 2020/21 UBR of 49.9p (England & Scotland) and 53.5p (Wales).
For England 2020 it would be:
Small, Medium and Large Business Rate: 0.49.9p
For Scotland it would be:
2020 – Small and Large Business Rate: 49.9p with an inflation rate of 1.7% in both categories.
2021 – Small and Large Business Rate: 50.7p with an inflation rate of 1.7% in both categories (assuming the same inflation rate as 20/21).
For Wales 2020 it would be:
Small and Large Business Rate: 53.5p with an inflation rate of 1.7% in both categories:
The increase has, once again, led to calls for the inflationary rise to be scrapped to help struggling businesses, particularly retailers. The British Retail Consortium was quick to point out its members will be paying an extra £137 million based on the new CPI.
Pubs are expected to pay out an extra £12.77 million with restaurants and hotels facing increases of around £9.71 million and £14.41 million respectively, according to other industry figures
The Valuation Tribunal has ruled in favour of Voodoo Doll Ltd following an appeal over the valuation method used on the Mojo bar and restaurant in Manchester.
A Tory MP is calling for business rates to be scrapped and replaced by an increase in VAT in order to save high street businesses.
Maximising income and protecting cash flow has never been more important for landlords as the UK battles through the latest stage of the pandemic.