Retail, hospitality and leisure businesses in England have been offered a reprieve with the government increasing the RHL relief from 50% to 75% for the 2023/24 financial year. This is worth £2.1 billion of the overall support package announced last November and is expected to be a major help to businesses who might otherwise have had to take drastic measures.
Business rates reliefs are available to eligible commercial properties, with the responsibility of local authorities to ensure that these properties are in receipt of reliefs. However, analysis by the Office for National Statistics (ONS) and Centre for Retail Research (CRR) showed that retail sales values fell by 1.2% in December 2022 and hospitality sales decreased by 13% in the third quarter of 2022. Additionally, 17,000 retail sites closed that year, the highest amount for five years.
Anthony Hughes, Managing Director of RVA Surveyors, said: “Whilst RHL is great for the here and now, few are aware or prepared for when the relief is set to end on the 31st of March 2024. Generally, Local Authorities do a fantastic job ensuring that reliefs are allocated quickly and accurately. However, they are notoriously understaffed and given the stresses and strain over the last few years, sometimes properties slip through the cracks. This is where we would encourage property owners and tenants to audit business rates accounts.”
The government has responded to the challenges faced by the retail, hospitality and leisure sectors over the last year, with the RHL relief extended from 1st of April 2023 until 1st of April 2024. This reprieve is expected to help businesses save and invest, however they will return to paying 100% of their business rates liability from 1st of April 2024.
RVA Surveyors, a family-run, independent business rates reduction specialist based in Manchester, are encouraging property owners and tenants to audit business rates accounts to ensure they are receiving the reliefs they are entitled to.
