Businesses in England have been struggling to keep up with the changes brought by the 2023 Rating List and the accompanying £14 billion support package. Anthony Hughes of RVA Surveyors said that the political and economic climate of 2022 had a significant influence on what support would be available.
Chancellor of the Exchequer Jeremy Hunt announced that part of the package would include freezing the multiplier, which was at its highest level since it was introduced. This would be funded by £9 billion of the total support package.
The government’s findings showed that Rateable Values (RV) increased by 7% nationally, however, the frozen multipliers have pushed the increase in business rates to around 14%. Hughes added that business owners and leaders don’t feel like the support package has gone far enough.
For example, the retail sector was said to have a -10% decrease in RV, however, the net effect of business rates still means many are struggling. The Retail, Hospitality, and Leisure (RHL) relief was increased to cover 50% of a property’s business rates, but it is only a stopgap measure with a finite deadline.
Charles-Henry Monchau, CIO at Bank Syz, has warned that inflation has driven up costs for many larger companies excessively. With businesses facing increased overheads and lower turnovers, there is concern that consumers may not visit them at the same level, indicating a period of economic hardship.
Derick is an experienced reporter having held multiple senior roles for large publishers across Europe. Specialist subjects include small business and financial emerging markets.