The Treasury golden goose gets even fatter
Last month’s Autumn Statement confirmed that last year, the Treasury received a £1bn windfall from the business rates yield and, this year, expects revenue to rise by £0.6bn.
However, over the next 4 years, the yield from business rates will rise by £1.6bn in 2017/18, £1.6bn in 2018/19, £1.4 in 2019/20 and £1.3 in 2020/21, effectively clawing back the entire giveaway announced in the Budget, appertaining to the extension of small business rate relief and the switch from RPI to CPI in 2020.
The Chancellor has decided to lower Corporation Tax even further, whilst the yield for business rates will smash through the £30bn barrier in 2018/19- 2 years earlier than forecasted.
A wasted opportunity
The Autumn Statement was a wasted opportunity to say anything new for business rates. The Chancellor spun the same announcement as he gave in March, yet what he excluded from the Autumn Statement delivery was that the overall yield is going up.
In summary, our Government will be reimbursed with everything they’ve promised to give to businesses- not the out-come we had hoped for.