Business rates reform confirmed for 2020 after fears it could be scrapped

 
Alys Key
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The treasury confirmed the plans will still go ahead (Source: Getty)

The treasury has confirmed that a budget proposal to reform business rates will go ahead as planned.

It was feared that plans to switch the rate from being based on Retail Price Inflation (RPI) to the lower Consumer Price Inflation (CPI) could be delayed or scrapped after they were not mentioned in the Queen's speech.

But the treasury confirmed over the weekend that the change will still take place in 2020 as planned.

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A spokesperson said: “We are committed to switching business rates indexation from RPI to CPI from 2020 and will introduce legislation in due course.

“The switch means we will be spending £1bn more by 2022 to lower costs for business.”

Read more: More business rates woe: bills to increase £1.2bn next year

Nearly 900,000 businesses have already seen their bills cut this April, while a third of businesses pay no rates at all.

With the switch to CPI, it is estimated that companies will save £1bn in the first three years, including a £250m saving for the retail sector.

Read more: FSB urges Sajid Javid to end 'shambolic' delay of business rate relief fund

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