Following criticism from business groups of the revaluation, with concerns that it would lead to significant rate increases for some small firms, Javid published figures showing thousands of businesses across the country are set to benefit from lower rates.
In particular, he said the new values would give regional economies the edge they need to drive growth. Bills across the northern regions of England are due to fall by 10% before inflation, a fall of £600m a year. Firms in the Midlands would see their bills fall by an average 5%, a fall of £230m annually.
The Department for Communities & Local Government stated this is on top of measures from this April to give firms in premises with a rateable value of £12,000 and below 100% business rates relief, which is expected to mean 600,000 small businesses will pay no rates.
“Our regions have huge economic potential, and can be a catalyst to driving economic growth across the country,” Javid stated.
“The revaluation of business rates will help make sure bills are accurate, with nearly three-quarters of businesses seeing a fall, or no change. In fact, the generous reliefs we are introducing mean that 600,000 small businesses are paying no rates at all – something we’re making permanent so they never pay these bills again.”
According to the DCLG, the fiscally neutral changes will see the following average bill cuts across both the Northern Powerhouse and the Midlands Engine.
Northern Powerhouse:
Durham – an average 10% cut in bills
Newcastle – an average 11% cut in bills
Manchester – an average 3% cut in bills
Liverpool – an average 7% cut in bills
York – an average 6% cut in bills
Leeds – an average 11% cut in bills
Hull – an average 13% cut in bills
Sheffield – an average 9% cut in bills
Midlands Engine:
Birmingham – an average 6% cut in bills
Coventry – an average 7% cut in bills
Derby – an average 4% cut in bills
