To ask the Secretary of State for Communities and Local Government, what assessment his Department has made of the local economic benefits arising from the small business rate relief scheme.
23 March 2015
We have doubled the level of small business rate relief since October 2010. For 2015-16, this means an estimated 400,000 properties are paying no rates at all, while a further 200,000 properties are benefitting from tapered relief.
Small businesses will also benefit from other measures in our £1.4 billion package of support for 2015-16 bills, including the 2% cap on the increase of the small business rates multiplier for two years and the £1,500 discount for shops, pubs and restaurants with rateable values below £50,000. They will also benefit from wider support for small businesses.
Business rates are a proportionately higher fixed cost for small businesses as compared to large. The doubling of Small Business Rate Relief therefore provides targeted support to reduce small businesses’ tax burden.