A revaluation of business rates will no longer take place in 2021 to help reduce uncertainty for businesses affected by the impacts of coronavirus, the government has announced.

Legislation had been introduced to bring the next revaluation forward by one year from 2022 to 2021, but following the recent economic impacts of the coronavirus pandemic ministers want to ensure businesses have more certainty during this difficult time.

Communities Secretary Robert Jenrick said: “We have listened to businesses and their concerns about the timing of the 2021 business rates revaluation and have acted to end that uncertainty by postponing the change.

“Now is the time for us to continue to focus on supporting businesses affected by the pandemic, including through our unprecedented package of almost £10 billion in business rates relief.

“The government is continuing work on the fundamental review of business rates, with the key aims of reducing the overall burden on businesses, improving the current business rates system, and considering more fundamental changes in the medium-to-long term. The call for evidence for the review will be published in the coming months.”

Businesses have been given a business rates holiday for 2020/2021 and a deferral of VAT payments.

Commenting on the news, Davis Coffer Lyons director Trevor Watson, described it as a “step in the right direction”.

He added: “I find it completely incredulous that the government thinks it will re-introduce the payment of property based business tax into an economy which is digitising at an astonishing speed, accelerated by covid-19.

“Surely the time is now to abolish rates and replace it with a business tax that levels the playing field with digital businesses?”