High street businesses have been given a new lifeline after the business rates Retail Discount extension was reintroduced to Parliament this week.
The Government announced that it would extend the scheme back in October, but the snap general election risked delaying its implementation.
Cutting rates by a third, the business rates Retail Discount is available for occupied retail properties with a rateable value of less than £51,000 in each of the years 2019/20 and 2021/21.
According to reports, the discount is expected to save small businesses around £770 million each year.
Welcoming the move, the Federation of Small Businesses (FSB) said the move will help “breathe new life into our small shops, restaurants and cinemas.”
“It’s vital that this Queen’s Speech is now followed-up with a business-friendly Budget in the new year, one that encompasses the fundamental review of the regressive rates system promised today,” it said.
Kate Nicholls, chief executive of UK Hospitality, added: “Rates have arguably been the single biggest barrier to growth for hospitality and a shake-up of the whole business tax system is overdue.
“This support does need to apply to the whole of hospitality, though, and we will continue to push the Government to ensure that the business tax system is fit for purpose in the 21st Century.”
Under the reforms, the Government has also promised to carry out rates revaluations every three years instead of five.
To learn more about the Retail Discount, click here.
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