Overview

This bill proposes to abolish business rates in England and Wales. It aims to simplify the tax system and potentially stimulate economic activity by removing this tax burden on businesses.

Description

The Abolition of Business Rates Bill seeks to remove Part III (non-domestic rating) from the Local Government Finance Act 1988 and repeal the Business Rates Supplements Act 2009. This effectively eliminates business rates as a tax. The bill allows for the creation of regulations by a Minister of the Crown to manage the consequences of this abolition. These regulations will address transitional issues and make necessary adjustments to other legislation. The power to create these regulations requires parliamentary approval. The bill applies only to England and Wales, and its commencement date will be set by ministerial regulation.

Government Spending

The abolition of business rates will significantly increase government spending. The exact figure is not specified in the bill itself, but it would represent the entire revenue previously collected through this tax. This will necessitate finding alternative sources of funding for local government, which currently relies heavily on business rates.

Groups Affected

• Businesses in England and Wales: Will benefit from the removal of business rates, potentially leading to increased profitability and investment.
• Local Governments in England and Wales: Will face significant financial losses, requiring adjustments to budgeting and potential cuts in services or increased reliance on central government funding.
• Central Government: Will have to find additional revenue to compensate for the loss of business rate income. This could involve increased taxation elsewhere or cuts in other areas of government spending.
• Property Owners: May experience changes in property values as a result of the tax change.

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