Business rates revaluation to hit Yorkshire firms harder than London's

The Government’s business rate revaluation is due to hit businesses in Yorkshire harder than those in London, new analysis has suggested.

Research from Labour has found that in Yorkshire and the Humber the draft revaluation, published last week, suggests that on average businesses will see a £549 increase to their business rates bill.

Across the North West an average business rates bill will grow by £850, and the East Midlands faces an average business hike of £1,100 and in the West Midlands £1,150.

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Meanwhile, Labour said the amount of business rates paid on average in inner London will rise by just £205, lower than any English region.

Business rate valuations are being reassessed.Business rate valuations are being reassessed.
Business rate valuations are being reassessed.

The official Government document on rateable values, which is being revised for the first time since 2017, shows that across England and Wales, the rise in rateable rise will be 7.1 per cent. This going up from a collective £65.7bn in 2017 to £70.3bn.

The East region has a 14.4 per cent increase, the largest regional rise in England, with the North East lowest at 2.2 per cent.

London’s overall rise is just over three per cent, with Yorkshire and Humber at just under five per cent – above the capital but below the average national rise.

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In the Autumn Statement, Chancellor Jeremy Hunt froze the business rates multiplier for another year to protect businesses from rising inflation, meaning that rates will no longer be hiked in line with double-digit consumer prices inflation from next April.

This measure alone is expected to save companies £9.3 billion over the next five years.

The Treasury also pledged to increase rates relief for retail, hospitality and leisure firms from 50 per cent to 75 per cent for 2023 to 2024.

Furthermore, many high-street retailers who have seen the value of their property rents tumble in recent years will benefit from a move to revalue business rates.

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The Government said it would be removing the downwards cap – meaning businesses who see falling business rates bills as a result of revaluation will benefit from the decrease straight away.

The draft revaluation report shows the retail industry will record a 10 per cent drop in rateable value by sector, but industry and office-based businesses are on course for rises.

Labour has committed to scrapping business rates and replacing them with a fairer system in government, with the plan including the introduction of annual revaluations.

Rachel Reeves MP, Labour’s Shadow Chancellor and Leeds West MP, said: “Labour is a pro-worker, pro-business party, and we will work with our British firms to get our economy growing, so that we can create good jobs, lead the pack and lift living standards while we’re at it too.”