FSB has backed the Government’s move to accelerate the move to link business rates to the Consumer Prices Index (CPI) rather than the Retail Prices Index (RPI).
The decision, announced in the Autumn Budget, brings forward the date of the change from 2020 to 2018 – a switch the Government says will save businesses £2.3 billion over the next five years.
“FSB has campaigned for CPI-indexation of business rates bill increases for months now, and it’s good to see that the Chancellor has listened to the small businesses that would have been hardest hit by an RPI-linked increase,” said FSB National Chairman Mike Cherry.
The Government also announced plans to move towards three-yearly revaluations, rather than the five years that had originally been proposed.
The Budget also saw the abolition of the so-called ‘staircase tax’ in England and Wales, under which some businesses with offices in communal blocks would play significantly higher rates.
Mr Cherry said: “We hope this marks the first step towards wholesale reform of the regressive rates system.”