The Chancellor announced that due to the rise in inflation he would be bringing forward the planned switch from RPI to CPI from 1 April 2018 in relation to calculating the 'business rates multipliers'.
Business rates are calculated by multiplying the 'rateable value' of the property by the 'business rates multiplier'. The multipliers are increasing in 2018/19 to 49.3p and 48.0p for the England standard multiplier and England small business multiplier respectively.
In addition, the government will introduce retrospective legislation to deal with the 'staircase tax' issue, where businesses operating from several floors within one property had been sent demands for each occupied floor. Businesses that have been affected by the “staircase tax” will be able to approach the Valuation Office Agency (VOA) to recalculate valuations.
More good news for pubs as Mr Hammond announced that he would continue the £1,000 discount where the rateable value is up to £100,000.
The Chancellor acknowledged that the five year valuation periods can result in large jumps to the rates paid by businesses. It was, therefore, announced that the frequency of VOA revaluations would move to every three years following the next revaluation in 2022. Further consultation is scheduled in Spring 2018.