- Business rates to based on CPI, instead of RPI
- Revaluations will now be conducted every three years
- Coporation tax to be cut to 17% by April 2020
- Closing VAT loophole on Amazon
- Sugar tax to be introduced in two years
Chancellor George Osborne has revealed business rates will be based on the Consumer Price Index (CPI) instead of the higher Retail Price Index.
However the new system, which means annual increases will be based on the CPI, will not take effect until 2020.
Business rates revaluations will also be conducted more frequently - at least every three years - Osborne said.
The Chancellor announced the moves in today’s Budget following a delayed government review of business rates which has taken more than two years. The retail industry has campaigned for years for more fairness on business rates.
The Chancellor also revealed plans to more than double small business rate relief, meaning 600,000 small businesses will pay nothing on rates.
In total, 250,000 firms will pay less in business rates, Osborne said.
The government will also cut corporation tax to 17% by April 2020.
Meanwhile, Osborne revealed plans to close a VAT loophole used by online companies, such as Amazon and Google. The Chancellor said many firms face unfair competition from online-only firms.
In a dramatic move, Osborne also announced plans to introduce a sugar tax on sugary drinks in two years time.
To read reaction to today’s Budget and how it impacts retail, click here