September CPI signals new business rates for 2019/20
The September Consumer Price Index (CPI) has been announced at 2.4%.
The CPI is important to business rates as it affects the Multiplier, on which Rates’ Payments are calculated each year. This figure is compounded annually by the increase or decrease, in line with inflation.
The September figure is of no great surprise and for those who work with business rates it translates as a 2019/20 UBR of 49.2p (England & Scotland) and 52.6p (Wales) – with a caveat that the Government can, if it wishes, set different figures, but this is rare.
Assuming the 2.4% figure for the rest of the 2017 List:
England and Greater London areas:
2019 – Small, Medium and Large Business Rate: UBR of 0.492
2020 – Small, Medium and Large Business Rate: UBR of 0.504
Scotland is adopting a 5-year revaluation and has a UBR of 0.516 for the 2021 year (again, assuming a 2.4% inflation rate).
For Wales it is the following figures:
2019 – Small and Large Business Rate: UBR of 0.526
2020 – Small and Large Business Rate: UBR of 0.539
London Mayor Sadiq Khan is the latest big name to call on the government to extend the business rates holiday beyond April 2021.
The retail and hospitality sectors are mobilising the troops with dire warnings that thousands of business are at risk if the rates holiday isn’t extended beyond April 2021.
The pandemic has led to more than 50,000 extra appeals being lodged against business rates by Scottish firms alone.