James Thompson, head of business rates at Deloitte Real Estate, comments on the Chancellor's announcement to extend the business rates benefit:
"The Chancellor announced that the business rates incentives flowing from the new round of enterprise zones (EZs) will be extended for a further three years. These incentives are capped at €200,000 in any three year period under the EU de-minimis state aid rules for any business. These will now be available to businesses moving into EZs before the end of March 2018 (previously 2015)The effects will be modest for all but the smallest businesses. The greatest beneficiary will still be the local councils who will be able to retain all the business rates growth from the EZs for 25 years as announced in 2011.
"In conclusion, there will be benefits for small businesses starting up in or moving into an EZ from the short-term rates exemption. The greater benefit will continue to be felt by the local council, who will retain the growth in business rates. The rates exemption on its own is unlikely to drive the waves of development that the 1980s' EZs generated."
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