Budget announcement

The Chancellor’s 29 November 2011 Autumn Statement Announcement

This is important news for your business. The Chancellor of the Exchequer announced in his Autumn Statement two Business Rates measures. They were:

• A further six month extension of the increase in Small Business Rate Relief; and

• A deferral scheme for 60% of the RPI increase (5.6%) in 2012/2013 bills.

Further one year increase in small Business Rate Relief

The further extension of the temporary Small Business Rates Relief measure will mean that eligible ratepayers will receive the increased relief through the whole of 2012/2013 billing year. The Chancellor is aiming to have the necessary legislation in place for January 2012 so that Ratepayers annual bills are able to take account of the extension.

The current temporary increase in Small Business Rate Relief, which started on 1st October 2010 and was due to end on 31st March 2012, will now continue for a further year (1st April 2012 to 31st March 2013).

Ratepayers with rateable values below £6,000 pay no rates at all for the period, while ratepayers with rateable values between £6,000 and not more than £12,000 receive tapered relief from 100% to 0%.

For businesses with a rateable value of between £12,001 and £18,000, there is no discount, but the business will continue to be entitled to have their rates bills calculated using the small business rate multiplier.

There are no other changes to the scheme and the Government has confirmed that it will meet the costs of the increased levels of relief.

Runnymede Business Rates section can answer questions you may have on the scheme
call 01932 425412/425415 or by email: businessrates@runnymede.gov.uk

Deferral Scheme 

The deferral scheme will be administered on a similar basis as the 2009/2010 deferral scheme. Ratepayers will be able to defer 60% of the RPI increase in their rates bills which will be paid back equally in the following two years. The legislation required to allow the deferral will not be enacted until next year. Therefore, ratepayers will not be able to defer from the start of the billing year. Further information about the scheme will be provided by the Government shortly.

The Government will fund any new costs associated with the scheme.