The Parliamentary Under-Secretary of State for Communities and Local Government (Robert Neill)
This Government are determined to support businesses—large and small—to support growth and build a stronger economy. In support of those aims, the Government announced two important business rates measures in the autumn statement. We will:
double the levels of relief available to small business ratepayers for a further six months on top of the existing two-year scheme; and
enable business ratepayers to defer payment of 60% of the RPI increase (5.6%) in their 2012-13 business rates bills.
Extending the period for which levels of small business rate relief are doubled means that eligible small businesses will benefit from significant additional reductions in their business rates bills throughout the whole of 2012-13. Approximately half a million businesses in England are expected to benefit, with about a third of a million businesses paying no rates at all for that period.
We have also listened to business concerns about the RPI increase for 2012-13. We are therefore giving businesses the option of spreading the increase over three years. Businesses will be able to defer payment of 60% of the RPI increase in their 2012-13 rates bills until 2013-14 and 2014-15. This will give businesses flexibility to manage their rates bills in the current economic climate and help their cash flow.
Those measures are in addition to the ones that we are already delivering through the Localism Act 2011. Through the Act we are:
simplifying the process for claiming small business rate relief;
waiving £175 million of backdated business rates demands levied on businesses, including some in ports;
giving local authorities wide-ranging, discretionary powers to grant business rates discounts; and
ensuring that all future business rates supplements projects will have to be put to the ballot so that liable businesses can decide whether to impose the business rate supplement upon themselves.
Taken together, the support provided through these measures will help businesses across the country to prosper.