Bill for lower business rates for convenience stores passes third reading
Bill for lower business rates for convenience stores passes third reading
Blog Article
The Non-Domestic Rating (Multipliers and Private Schools) Bill, that could introduce a permanently lower business rates multiplier for convenience stores, passed its third reading in parliament on Wednesday (15) evening, with the Commons voting 341 to 171 in favour of the Bill.
The Bill seeks to make a number of changes to the way that business rates are calculated, including a permanently lower rate for retail, hospitality and leisure businesses with a rateable value of under £500,000.
The small business multiplier is currently set at 49.9p, while the standard non-domestic rating multiplier is set is 54.6p. The 75 per cent business rates discount for retail and hospitality businesses that was introduced after the pandemic is being reduced to 40 per cent in April, resulting in increased costs for thousands of retailers.
In evidence given to the Bill Committee in December, ACS urged MPs to set the new lower rate for retailers at 20p less than it is currently (utilising the full extent of the powers of the Bill) so that it can have a tangible impact and save retailers up to thousands of pounds on their rates bills.
During the Third Reading debate last night (15th January), both Government and opposition MPs praised the work of ACS in campaigning for rates reform.
In the debate, Sureena Brackenridge MP (Labour) said, “For years, high streets have been forced to compete unfairly with massive online retailers and retail parks, but the Bill will ensure that the largest online retailers, supermarket chains and distribution warehouses finally pay a fairer share.
"The Association of Convenience Stores has said that these changes will save small stores money that can be used directly to hire more staff, install new CCTV, and invest in the future.”
Convenience store body Association of Convenience Stores (ACS) has welcomed the progress of the bill.
ACS chief executive James Lowman said, “Retailers have had very little to look forward to recently, with increases in employment costs and reductions in their business rates discounts putting pressure on the viability of stores across the country.
"The progress of this Bill marks some good news for our sector, which would benefit from a lower rates multiplier and enable more stores to invest in the long term. We urge the Government to ensure the new multipliers are set at a level that would offset the cost of reduced business rates relief and unlock investment in villages, parades, and high streets.”
The full details of the Non Domestic Rating (Multipliers and Private Schools) Bill are here: https://bills.parliament.uk/bills/3887
ACS has also submitted a response to the Government’s consultation on Transforming Business Rates, highlighting the importance of a business rates system that prioritises competitiveness for retailers.
This approach supports their vital role in serving communities while fostering investment, growth, and the continuation of essential services. The submission can be read here.
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