Chancellor's 'lowest tax rates since 1991' claim debunked

"Reeves told MPs she would introduce "lowest tax rates since 1991" for the high street using "tax rates" in the plural but only one of the new multipliers is even close to the level seen in 1991 which will apply to only the smallest properties with much higher effective tax rates for the rest of the high street. The Chancellor's comparison hinges on the new 38.2p multiplier for Retail, Hospitality and Leisure (RHL) properties with a rateable value between £12,000 and £51,000."

"But Treasury costings also show that any property not receiving transitional relief will also have to pay a 1p supplement on top of those rates in a £785 million tax grab, meaning thousands of small RHL premises will actually face a 39.2p rate not the 38.2p highlighted in the Budget speech. Whilst medium and large premises on high streets, the tax rates increase sharply: £: taxed at 50.8p, or 51.8p with the supplement."

The Autumn Budget claim of the lowest tax rates since 1991 for RHL properties relies on a single 38.2p multiplier that applies only to properties with rateable values between £12,000 and £51,000. Many small premises will pay a 1p supplement, raising their effective rate to 39.2p. Medium and large high-street premises face much higher multipliers, reaching 50.8p (51.8p with the supplement). Properties under £12,000 RV largely pay no business rates due to Small Business Rate Relief. Support for the high street falls by £420 million next year as existing RHL discounts are replaced.

Read at London Business News | Londonlovesbusiness.com