In this week’s Enews, we look at the business rate cut on the way for retail, hospitality and leisure properties. There is also news on student loan refunds and pension reforms to update you on.

• Permanent business rate cut for high street on the way
• More than 400,000 student loan customers use digital refund service
• Pension reforms 'must unlock growth'

The government has published draft legislation to permanently cut business rates for retail, hospitality and leisure properties from 2026.

The tax cut will be funded by a tax rise for the very largest business properties, such as online sales warehouses, the government added.

Until then, 250,000 retail, hospitality and leisure (RHL) properties will receive 40% relief off their business rates bills up to £110,000 per business to help smooth the transition to the new system.

This support is alongside the Budget announcement to freeze the small business multiplier, together with Small Business Rates Relief protecting over a million properties.

James Murray, Exchequer Secretary to the Treasury, said:

'For too long the business rates system has been working against our high streets.

'[This] is a major step towards our new system that will support retail, hospitality and leisure businesses on our high streets to succeed.

'This Bill paves the way for a permanent cut to their tax rate, helping to level the playing field between them and online and out-of-town businesses.'

Internet link: GOV.UK

Over 400,000 customers have now used the Student Loan Company's (SLC) digital refund service.

The SLC introduced a new service into the online account for repayment customers in May 2024 and has released data on the first six months of operation.

The SLC says its simple, digital service is an easy way for customers to self-serve, requesting a Below Threshold Refund, which is then paid directly into their bank account.

Under the repayment regulations, there are four refund scenarios, which the publication covers. These are 'below threshold refunds', 'over-repayment refunds', 'early repayment refunds' and 'wrong plan type refunds'.

Steven Darling, Customer Experience Director at the SLC, said:

'At the SLC, we want to provide the best possible customer experience, and from the feedback we receive from customers, they want to be able to self-serve in their online account.

'With a below threshold refund being the most common reason why a customer might be eligible for a refund, we've made it quick and easy to request a refund through the online account. The figures in our latest report demonstrate the value of these improvements, with £61.6 million being paid to 248,000 customers since May 2024.

'I would encourage customers to keep their contact and bank details up to date in their online account to ensure they don't miss any key communication regarding refunds.'

Internet link: GOV.UK

Pension reforms announced by Chancellor Rachel Reeves must unlock growth, according to the British Chambers of Commerce (BCC).

Pension megafunds will be created as part of the biggest set of pension reforms in decades. The government says this will unlock billions of pounds of investment in exciting new businesses and infrastructure and local projects.

The reforms, which will be introduced through a new Pension Schemes Bill next year, will create megafunds through consolidating defined contribution schemes and pooling assets from the 86 separate Local Government Pension Scheme authorities.

These megafunds mirror set-ups in Australia and Canada, where pension funds take advantage of size to invest in assets that have higher growth potential, which could deliver around £80 billion in investment in exciting new businesses and critical infrastructure while boosting defined contribution savers' pension pots.

Shevaun Haviland, Director General at the BCC, said:

'Increased investment in the UK economy is crucial if businesses are to deliver the growth we all want to see.

'And with firms facing into a wall of fresh costs after a tough Budget, it is important that the Chancellor looks at the options to unlock more funding.

'UK pensions can be a crucial component in doing that. They can generate billions for investment in infrastructure projects and the businesses of the future.'

Internet link: BCC website