Overview

This bill proposes to abolish business rates in England and Wales. It aims to simplify the tax system for businesses and potentially stimulate economic growth, but also requires the government to find alternative funding mechanisms.

Description

The Abolition of Business Rates Bill seeks to completely remove Part III (non-domestic rating) from the Local Government Finance Act 1988, effectively ending business rates. The Business Rates Supplements Act 2009 would also be repealed. The bill empowers a Minister of the Crown to create regulations to manage the consequences of this abolition, including modifications to existing legislation (excluding primary legislation passed after the bill's passage). These regulations will require parliamentary approval. Transitional provisions will also be made through regulations subject to parliamentary scrutiny. 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 impact UK government spending. The bill does not provide specific figures, but it's expected to result in a substantial loss of revenue for local authorities currently reliant on this tax. The government will need to find alternative funding mechanisms to compensate for this revenue loss, potentially increasing other taxes or reducing spending elsewhere.

Groups Affected

• Businesses in England and Wales: Will benefit from the removal of business rates, potentially leading to increased profits and investment.
• Local Authorities in England and Wales: Will experience a significant loss of revenue, potentially impacting their ability to fund local services. They may need to find alternative revenue streams or reduce services.
• Central Government: Will need to find alternative funding solutions to replace the revenue lost from business rates, potentially impacting national spending plans and potentially leading to increased taxation elsewhere.
• Property Owners: The impact on property values could be significant, depending on the replacement mechanisms for funding local services.

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