Following the Chancellor’s Spending Review statement on Wednesday, in which it was announced that the business rates multiplier is to be frozen in 2021/22, the next year’s “small multiplier” will change from 50.1p to 49.9p. The change applies only to England, as the devolved administrations in Wales and Scotland have yet to make any similar announcements.
In 2021/22, for any properties in England still in what is known as “transition”, whereby large increases or decreases in liabilities are ‘capped’, the inflation factor has also been set to zero, instead of the 0.4% previously calculated after the announcement of the September 2020 inflation figures last month.
For the final 2022/23 year of this rating list, we have assumed that inflation reverts to the 2.0% rate targeted by the Bank of England and that this will be applied to a 49.9p base figure, resulting in a 2022/23 small multiplier of 50.9p. In both 2021/22 and 2022/23 it is assumed that the large multiplier in England will be 1.3p higher, giving large multipliers of 51.2p in 2021/22, which is the same as the current year, and 52.2p in 2022/23. As a result, many liabilities will not have changed for next year but, as we are conscious that you will have heard the Chancellor’s statement and be questioning if this impacts your liabilities for next year, we attach our latest estimated liabilities report for you.
The Chancellor did add that a decision about whether to continue any of the hospitality relief, that currently gives a 100% discount to hotels, beyond 31st March 2021, will be announced “in the New Year”.