Despite loud calls in the press and from the property industry for action from the Chancellor on business rates, the Budget announcement was a big disappointment, says Andrew Kilpatrick of Kilpatrick & Co.

The three changes announced as a £435m cut in rates were:-

1) A £300 million fund for local authorities to provide discretionary “hardship” relief;

2) A £1,000 discount in 2017/18 for pubs with RV of under £100,000;

3) A capped rate increase of £50 per month for any business coming out of small business rate relief.

Andrew Kilpatrick said “The so-called cut is just an illusion as nearly 70% of the Chancellor’s £435m cut is the discretionary hardship relief, which is to be phased in over 3 years. It may stop some sports clubs facing large rate increases from going bust, but won’t help the vast majority of businesses and does nothing to stimulate economic activity. The only good news is for the pub sector, who will get a one off rates reduction of £1,000 in 2017/18.”

“The Chancellor has also announced another review of business rates reforms in the Budget, but we have just had a review and the Government failed to listed to industry professionals on either the new transitional system or the new “check, challenge and appeal” system, both of which are intrinsically unfair on the ratepayer and simply make the rates system harder to operate, and more inefficient.

"One of the biggest problems is the large number of empty shops in many town centres suffering under a heavy rates burden and to effectively deny these properties the large rates reduction they are due in 2017 is unhelpful and does nothing to encourage regeneration to get those important town centre shops reoccupied.

"The Government should have been bold and brave and abolished all transitional surcharges, even at the cost of having to increase the UBR by a few pence in the pound. Unfortunately, like its predecessor, the Government is more concerned with appearing to listen than taking meaningful action, in my view.”

Kilpatrick & Co offer specialist advice on business rates and may be contacted at 01793 643101 or 01635 229030 or by email to post@kilpatrick-cpc.co.uk.