Business rates will be slashed to protect businesses from surging energy prices, under plans drawn up by Conservative leadership frontrunner Liz Truss.
The Telegraph reports the government could extend business rates relief from premises with a rateable value of £15,000 to those valued at £25,000.
Truss’ team has been discussing the proposals with industry lobbyists as she prepares to become Prime Minister next week if she wins the support of Tory members. Nadhim Zahawi, the Chancellor, has also met with representatives from industry groups this month.
Businesses are facing a crisis next month, when many corporate energy contracts will also come up for renewal. Unlike for consumers, there is no price cap to protect them from surging wholesale markets - meaning many will be stung with a fivefold rise in their costs.
A source said Truss was receptive to the idea of expanding business rates relief, amid hopes that the policy could feed into the government’s Levelling Up agenda, and had been consulting business groups.
Craig Beaumont, of the Federation of Small Businesses (FSB), said: “We are increasingly confident that business rates are on Liz Truss’ radar.
“We like that she’s talked about small businesses and self-employed individuals, and the decisions on National Insurance Contributions.”
The FSB has said businesses have already been hit by a 424% increase in gas costs and a 349% rise in electricity since February 2021.
The UK hospitality industry has said thousands of pubs will shut down unless they get immediate access to government support to soften the blow of rising operational costs.
