From April 2020

Annual indexation of business rates

• There will be a switch in the annual indexation of business rates from the Retail Price Index (RPI) to the Consumer Price Index (CPI), which is the main measure of inflation. CPI is generally lower, therefore taxes for all businesses paying rates should reduce.

Business rate revaluations

• The government aim to introduce more frequent business rate revaluations (at least every three years).

Small business rate relief

• The government aim to consider the feasibility of replacing small business rate relief with a business rates allowance for small businesses
• This will take place after council systems and HMRC systems are linked (which is aimed to be completed by April 2022)

Business rates retention

In the Autumn Statement 2015, the government announced that:

• Local councils will keep the business rates they collect (councils with lower income due to this will be compensated)
• Local councils will have the power to cut business rates to boost growth
• Elected Mayors will have the power to levy a business rates premium for local infrastructure projects

There are no firm timescales on this yet, though it is expected before 2020.