hoppubs and other high street firms will see tax cuts of more than 50% from Saturday amid new property valuations, according to data.
Last year, the Government announced the first revaluation process for business rates – the equivalent of council tax for commercial property in the UK – in six years.
Thousands of companies will pay less because of the fall in value of commercial real estate and increased sector support, which will take effect on April 1.
According to commercial property consultancy Altus Group, the average shop will see its rates drop by £4,494 for the new year to £3,678, representing a 55% tax cut.
On average, pubs see a drop of £5,534, restaurants £5,553 and accommodation businesses £4,021.
The new property valuations will be based on figures calculated from April 2021, with taxes most recently based on values from 2015.
In retail, rateable value is down 10%, pubs 17%, restaurants 5% and hotels, serviced apartments and boarding houses and guest houses by 28% overall, according to Altus’ annual survey.
As part of a £13.6bn bailout package announced last autumn, the government has also frozen tax rates from April 1 to protect businesses from rising inflation.
It also increased the retail, hospitality and leisure discount from 50% to 75% for 2023/24 to a cash cap of £110,000 per business.
Alex Probyn, Global President of Property Tax at Altus Group, said: “These tax changes will bring much-needed calm to the current high cost of doing business for well-known companies.”
However, he also warned that “the tax rate freeze and increased retail discount is only a one-year commitment.”