Chancellor Rachel Reeves’ assertion that the Autumn Budget delivers the “lowest tax rates since 1991” for more than 750,000 retail, hospitality and leisure properties has been called into question after detailed analysis revealed that most high-street premises will in fact face significantly higher business-rates multipliers next year.
Reeves told MPs that she was introducing the lowest tax rates in over three decades, using the phrase “tax rates” in the plural. However, the claim hinges entirely on a new 38.2p multiplier for Retail, Hospitality and Leisure (RHL) properties with a rateable value between £12,000 and £51,000 — and even this headline figure is not what many premises will actually pay in practice.
Treasury documents confirm that any RHL property not receiving transitional relief will also face a 1p supplement, raising the effective rate for thousands of small sites to 39.2p rather than the 38.2p highlighted in the Chancellor’s statement.
For medium-sized high-street properties with rateable values between £51,000 and £500,000, the business-rates multiplier will be 43p, or 44p with the supplement — levels far above those seen in 1991. Large premises with a rateable value exceeding £500,000 face the sharpest rise, with a 50.8p multiplier, increasing to 51.8p once the supplement is applied.
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