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The Autumn Budget announced changes to Business Rates, creating implications for businesses and institutions across the nation. Industry experts, Head of Business Rates, Dmitri Okorie and Head of Business Rates – Surveying, Bradley Westlake, shared their thoughts on the changes and shared advice on navigating their impact.
Retail Relief
Regarding Retail, Hospitality, and Leisure (RHL) Relief, Dmitri stated that the reduction in the relief was expected as “it was clear that the original 75% relief wasn’t sustainable in the long term”. Whilst Reeves extended the relief scheme introduced during the pandemic, the drop to 40% for the 2025/26 tax year was more than expected. Dmitri acknowledged this, noting that ‘the RHL sector will still need to adapt, to accommodate the recent changes, as many may see an almost doubling in the business rates that they are paying over the next year.’
In terms of the new multiplier, for retail relief rising above 55p, both Dmitri and Bradley were surprised at the 0.9p increase per pound. Bradley added that the increase aligned with CPI inflation and was therefore expected, “while the increase is in line with the traditional increases, we have seen the Government freeze the multiplier on several occasions to try and limit the impact on businesses, it will certainly have a significant impact for those businesses that fall into the higher multiplier."
Private Schools
One of the most talked about changes covered in the Budget relates to private schools. Both Dmitri and Bradley agreed that the loss of their previous 80% mandatory rate relief will bring a wave of financial pressure for many institutions. Bradley highlighted that, ‘many private schools' rates will have gone unchecked for a significant period of time, potentially shielding them from years of incremental increases.’ He later stated that “these properties will now need reassessment, and the cost impact could be in the thousands”, therefore underscoring the urgent need for professional guidance to ensure they are not blind sided as they now face the full 100% rate.
Looking Forward
Due to the aforementioned changes to the regulations coming into effect on the 1st of April 2025, Dmitri stressed the importance of engaging with professional advisors as soon as possible. "Acting early on assessments could provide some protection to businesses. Through securing professional advice and staying informed, this will enable businesses and institutions to better manage the transition."
Looking forward to the future for Business Rates, Bradley highlighted two ongoing consultations from the government, with agencies, aimed at improving transparency within the Valuation Office Agency and the Business Rates scheme. Bradley added, “RCK Partners will be an active participant in these discussions and intends to advocate for clients by encouraging greater transparency from the Agency, allowing businesses to better understand the process. Increased transparency is always welcomed by agents and businesses.”
In the face of these upcoming changes, Dmitri and Bradley’s insights resonate as both a roadmap and a call to action for impacted sectors. RCK Partner’s expertise will help clients in mitigating the financial impact that many businesses may face as a result of the Budget announcement.
Get in touch with our experts for a complimentary audit of your Business Rates.
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