Small businesses are the lifeblood of our local economy in North Warwickshire and Bedworth, and I know how important they are to local jobs, community and village life, and our high streets. Having owned and run a high street shop in the past, I know firsthand how difficult running a small business can be, so standing up for small firms is one of my highest priorities as the local MP.
The last few years have been really hard for small businesses – and especially those in hospitality – first through the pandemic and then the energy price shock.
I know there are concerns about the Valuation Office’s revaluation of businesses that has taken place recently. I must be frank that the hospitality sector is seeing shifts in rateable values largely because the Valuation Office is basing them (as it is required to do) on market conditions in April 2024, which were stronger than in 2021 when it last undertook a valuation in the midst of the pandemic. That means an adjustment was inevitable, but I understand that this does not make the impact any easier for individual businesses.
That’s why I strongly welcome the Government’s announcement in the budget of permanently lower tax rates for retail, hospitality and leisure properties, replacing the temporary reliefs that were introduced during the COVID period. These new rates, worth nearly £900 million a year, mean that every qualifying hospitality business will pay a lower tax rate than they do now, with small properties seeing their rate fall to 38.2p, the lowest since 1990/91, and others under £500,000 falling to 43p, the lowest level since 2010/11.
Second, I am strongly supportive of the government’s action to ensure that a rise in a property’s rateable value does not mean bills rise by the same amount. Alongside the new lower multipliers, the Government has put in place a £4.3 billion transitional support package to protect businesses that see increases as a result of revaluation. For pubs, this includes the Supporting Small Business scheme, which caps annual bill increases for those losing previous reliefs. According to the current calculations, a typical independent pub would have seen its bill rise from £9,500 to around £15,800 without this support but will instead see that capped around £10,950 next year.
Rateable values can be checked directly through the Valuation Office. You can find more detail on these changes by clicking here.
These are all important measures to ensure that businesses are supported through what I know has been a difficult and turbulent time.