Local authorities are to be ”fully compensated” for any loss of income as a result of reductions in business rates, the Treasury has confirmed.
Chancellor Philip Hammond confirmed he would be cutting bills by one-third for retail properties with a rateable value below £51,000 over the next two years from April 2019. That measure is set to cost the Treasury £940m in those two years alone rising to just over £1bn over the next four years, according to the Treasury’s policy costings document.
In addition, the government will introduce 100% business rates relief for all public lavatories from 2020 (costing the government £5m a year) while it will continue the £1,500 business rates discount for office space occupied by local newspapers in 2019-20.
The Budget red book said: “Local authorities will be fully compensated for the loss of income as a result of these business rates measures.”