As you may know, business rate liabilities are based on a property's rateable value, which is assessed on the basis of the rental value of the property. These are reviewed by an independent agency typically every five years, and this is essential to make sure that rateable values reflect changes in the property market.
Ahead of the revaluation, the Government had committed to a package of cuts to business rates now worth nearly £9 billion. This included reliefs meaning that 600,000 small businesses will pay no business rates at all.
I do, however, recognise that the revaluation has raised some hard cases, especially for those businesses coming out of Small Business Relief. I therefore welcome the Chancellor's further announcements at the Budget. Under these changes, no business losing Small Business Rate Relief will see their bill increase next year by more than £50 a month, and the subsequent increases will be capped at either the small business transitional relief cap or £50 a month, whichever is higher.
A £1,000 discount on business rates bills will also be provided in 2017 for pubs with a rateable value of less than £100,000. Lastly, I welcome the fact that local authorities will be provided with a £300 million fund over the next four years to deliver discretionary relief to target individual hard cases in their local areas. Taken together, this represents further £435 million cut in business rates.