Mel Stride MP introduced secondary legislation on Monday to significantly reduce future business rate rises. In his capacity as Financial Secretary to the Treasury, Mel was delivering on the Government’s promise to change from the Retail Price Index (RPI) to Consumer Price Index (CPI) for the uprating of the multiplier for business rates. This will leave business rates much lower than they would have been without the change, with rates better protected against future increases in inflation. The move is expected to save the ‘average’ rate payer £1,200 a year by 2023.
Speaking in Parliament Mel said the change “represents a cut in business rates every year that will benefit all ratepayers and free up cash for businesses… giving the economy a further boost”. He confirmed that local authorities would be “fully compensated” for the reduction in business rates income.
The Devon MP, who launched his own business from scratch and ran it for 20 years before entering Parliament in 2010, explained how the legislation builds on the work the Government has already done to reduce business rates. For example, taking 600,000 of the smallest businesses out of paying rates altogether by increasing the payment threshold.
Mel also confirmed the Government will continue the £1,000 business rate discount for pubs with a rateable value of up to £100,000 for one more year.
