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Budget 2021 brings business rates relief to the high street

Business rates holiday extended until June

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Like many of the other Covid support measures, the business rates holiday was extended in today’s Budget announcements - but only until June, when a transitional 66% relief will come into effect.

3rd Mar 2021
Editor in Chief AccountingWEB
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The business rates holiday has been one of the quiet successes during the past year of business support initiatives. So far the government has underwritten some £10bn in rates concessions that have been welcomed as one of the most effective support measures for the retail sector.

The Budget Red Book (2.47) confirmed that eligible retail, hospitality and leisure properties in England will continue to receive 100% business rates relief from until 30 June 2021.

While other Covid support measures will continue until September, the rates holiday will go through a transitional period from July until the end of March 2022 when businesses will get 66% relief. The amount that a business can receive will be capped at £2m for properties that had to be closed on 5 January 2021, or £105,000 per business for other eligible properties.

Local authorities will be fully compensated for the loss of income as a result of these  business rates measures and receive new burdens funding for administrative and IT costs. Oddly, however, in a section on investment in HMRC, the Budget Red Book mentioned a new project to design and development a digital business rates admin system. Will that mean the local adminstration of rates will be wrapped into the tax department when the government's forthcoming review of business rates is implemented?

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