Reeves' "lowest tax rates since 1991" claim challenged as analysis shows most high-street premises will pay far more

"Chancellor Rachel Reeves' assertion that the Autumn Budget delivers the "lowest tax rates since 1991" for more than 750,000 retail, hospitality and leisure properties has been called into question after detailed analysis revealed that most high-street premises will in fact face significantly higher business-rates multipliers next year. Reeves told MPs that she was introducing the lowest tax rates in over three decades, using the phrase "tax rates" in the plural."

"Treasury documents confirm that any RHL property not receiving transitional relief will also face a 1p supplement, raising the effective rate for thousands of small sites to 39.2p rather than the 38.2p highlighted in the Chancellor's statement. For medium-sized high-street properties with rateable values between £51,000 and £500,000, the business-rates multiplier will be 43p, or 44p with the supplement - levels far above those seen in 1991."

The Autumn Budget asserts the lowest tax rates since 1991 for more than 750,000 retail, hospitality and leisure (RHL) properties. The assertion relies on a 38.2p multiplier for RHL properties with rateable values between £12,000 and £51,000. Treasury documents show any RHL property not receiving transitional relief will face a 1p supplement, raising the effective rate for many small sites to 39.2p. Medium-sized premises (£51,000–£500,000) will face a 43p multiplier (44p with the supplement), while premises over £500,000 will face 50.8p (51.8p with the supplement). These multipliers exceed the 38.6p national rate used in 1991/92 by more than 12p. Most RHL properties under £12,000 already pay no business rates due to Small Business Rate Relief. Analysis by global tax firm Ryan finds overall support for the high street will fall by £420 million next year. The current 40 per cent RHL discount is capped at £110,000 per business.

Read at Business Matters