Retailers welcome business rates announcement in Autumn Budget
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Retailers have welcomed a change in the way business rates are calculated, which will save them an estimated £210m over the next two years.
Following mounting pressure from retailers including B&Q boss Christian Mazauric, Carpetright chief executive Wilf Walsh and Holland & Barrett supremo Peter Aldis on Hammond to deliver "a shoppers' Budget" and put an end to "inexorable" rises in costs such as business rates.
Hammond announced in the Budget yesterday that the Government will base business rates increases on the CPI index rather than RPI two years earlier than planned - a move that he said would save businesses £2.3bn over the next five years.
In a further boost for retailers, future valuations will take place every three years, rather than every five which means rates bills should not rise so sharply in the future.
The Chancellor also announced that 100% business rates retention will be trialled in London next year.
Hammond acknowledged that the tax "represents a high fixed cost" to businesses and insisted the Government had "listened to concerns" from business leaders ahead of the Budget.
British Retail Consortium chief executive Helen Dickinson said: "This relief will unleash investment that retailers want to direct towards the needs of their customers. This will be particularly critical at a time when shoppers' disposable income is being squeezed further and the growth projections for the economy have been downgraded.
"Introducing three yearly revaluations is also a positive move to improve fairness of the system. These are encouraging first steps, so now is the time to commit once and for all to putting the rates system on a more affordable and sustainable footing, to support local communities, shops and jobs."
Hammond also pledged to create "a prosperous and inclusive economy", boosting the national living wage from its current rate of £7.50 per hour to £7.83 in April.