Local Government Minister Brandon Lewis writes in response to allegations that the postponement in the revaluation of business rates is being used to raise revenue for the government.
It is factually incorrect to assert that the government’s decision to postpone the 2015 business rates revaluation will increase tax revenues.
It will have absolutely no effect on overall revenues, but it will stop massive tax hikes for many firms - who will lose out from the significant volatility that the revaluation would bring. For the next 5 years, business rates will simply be tied to inflation, providing stability and certainty for businesses to plan and invest.
The coalition government recognises that business rates are a big burden for small firms in particular, which is why we extended small business rate relief, made it easier to claim that rate relief, and introduced new powers for councils to introduce local business rate discounts.