Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the impact of removing rates relief on small businesses after the first quarter of 2023.

Small Business Rates Relief (SBRR) is available to businesses with a single property below a set rateable value. Properties under £12,000 receive 100 per cent relief. There is also tapered support available to properties valued up to £15,000. Over a third of properties (700,000) already pay no business rates as a result of 100 per cent relief through SBRR, with an additional 121,000 in the taper.

At Autumn Statement 2022, the Government announced a package of changes and tax cuts worth almost £13.6 billion over the next five years, many of which may be available for small businesses, including:

• a freeze to the business rates multiplier for 2023-24, a tax cut worth £9.3 billion over the next 5 years, meaning all bills are 6 per cent lower than without the freeze;
• an increased 75 per cent relief for retail, hospitality and leisure properties, up to a cash cap of £110,000 per business for 2023-24. This is a tax cut worth over £2 billion for around 230,000 RHL businesses, to support the high street and protect small shops.
• an Exchequer funded Transitional Relief scheme worth £1.6 billion to protect an estimated 700,000 ratepayers facing bill increases due to increases in rateable value.
• a new Supporting Small Business scheme, providing over £500 million of support over the next three years. This will cap bill increases to £50 per month (£600 per year) for businesses losing some or all of their Small Business or Rural Rate Relief due to the revaluation.