The 2024 Budget and the Business Rate Challenge

Rachel Reeves’ 2024 Budget brought a mix of news for small businesses, particularly in relation to business rates. While some measures were introduced to provide relief, the overall burden of business rates remains a significant challenge for many.

It’s important to understand the key changes to business rates

1. Relief Extensions:
   
   • Small Business Rate Relief (SBRR): This relief, designed to help small businesses, was extended for another year.
   • Retail, Hospitality, and Leisure Relief: This relief, which reduces business rates for businesses in these sectors, was also extended.

1. Revaluation:

1. • Delayed Revaluation: The next revaluation of business rates was delayed, which could lead to increased bills for some businesses.

1. Support for High Streets and Town Centres:

1. • Investment Funds: Additional funding was allocated to support high streets and town centres, including measures to help businesses adapt to changing consumer habits.

There are some measures of relief for small businesses, but the chances are, it will be a higher burden – but there are steps you can take to reduce the business rate burden and the wider costs of having business premises:

1. Check Your Business Rate Valuation:
   
   • Challenge Incorrect Valuations: If you believe your business rate valuation is inaccurate, you can challenge it through a formal process.
   • Seek Professional Help: Consider hiring a rating surveyor to assess your valuation and identify potential challenges.

1. Claim Available Reliefs and Discounts:

1. • Small Business Rate Relief (SBRR): Ensure you’re claiming all eligible reliefs, including SBRR.
   • Retail, Hospitality, and Leisure Relief: If your business falls within these sectors, check if you qualify for additional relief.
   • Empty Property Relief: If your property is empty, you may be eligible for relief on business rates.

1. Consider Alternative Business Structures:

1. • Limited Company vs. Sole Trader: Explore the tax implications of different business structures and choose the one that minimises your overall tax burden.
   • Partnership: If you’re working with a partner, consider the tax benefits and drawbacks of a partnership structure.

1. Improve Energy Efficiency:

1. • Energy-Efficient Measures: Investing in energy-efficient measures can reduce your overall operating costs, including energy bills.
   • Government Grants and Incentives: Research government grants and incentives that can help fund energy-saving projects.

1. Negotiate with Your Landlord:

1. • Rent Reviews: Negotiate with your landlord to minimise rent increases during rent reviews.
   • Lease Terms: Review your lease agreement to identify any opportunities to reduce your costs.

1. Adapt to Changing Consumer Habits:

1. • E-commerce: Explore online sales channels to reach a wider audience.
   • Digital Marketing: Invest in digital marketing to attract customers and promote your business.
   • Omnichannel Strategy: Combine online and offline channels to create a seamless customer experience.

And perhaps best of all – come for a chat with us. We can help find the way to maximise support on business rate relief, while also helping reduce tax and other costs burdens elsewhere. Get in touch and we can start planning.