The High Street today welcomed £7billion worth of cuts to business rates – but others grumbled the reduction ‘didn’t go far enough’ and criticised the decision not to immediately bring in an online sales tax.
Rishi Sunak announced a number of changes for next years, including the cancellation next year’s rate multiplier increase and a 50% reduction in next year’s rates most retail, hospitality, and leisure businesses.
Shevaun Havirland, director general of British Chambers of Commerce, said that he was happy with the changes and that they would give companies’renew confidence in investing and growing’.
Jack Griffiths, founder and CEO of Snuggy luxury loungewear company, Teesside, said he was happy with the rate reductions but would have liked to see more support for small businesses. He is seen on the right with co-founder Joel Pierre
She stated: “The Chancellor has listened long-standing Chambers calls for changes to business rates system and this will bring good news for many businesses.
“It will provide much needed relief for businesses across America, giving many firms renewed confidence in investing and growing.”
Jace Tyrrell, chief executive officer of the New West End Company representing London’s West End firms, said that reforms to business rates were encouraging but they still fell short of what he had hoped.
He stated that despite the fact that rates are unlikely to rise this year if the inflation-linked multiplier is repealed, they are still too high.
“Reducing time between revaluations by three years is welcome. Short-term relief is available for investment in improvements or sustainability. But this is far from a fundamental overhaul.
Unveiling his Budget today, Mr Sunak told MPs that the cancellation of next year’s increase in the multiplier will save around £4.6bn over the next four years.
His new set of changes also included a 50% business rates relief in England for retail, hospital and leisure properties, for up to £110,000 per business.
This will be a benefit to around 90% of businesses in the different sectors, including newsagents and grocery stores, hairdressers, bars, gyms, and cafes.
This will occur after the reductions in business rates for these sectors during the current financial year, following the rates holiday during a pandemic.
Mr Sunak said the new temporary relief rate will take place for 2022-23 and be worth around £1.7bn.
The Chancellor also stated that rates revaluations will now be conducted every three years to replace the current gap of five years.
Rishi Sunak announced a number of changes for next years, including the cancellation next year of the rate multiplier increase and a 50% reduction in next year’s rates most shops. Pictured: Windsor High Street
Robert Hayton, UK president of Altus Group, a real estate advisor, described the measures as ‘a compelling array of support which will assist the recovery’.
Ryan Jones and Mike Hampton Riddington, partners in Cluttons’ business rates team, said: ‘As an industrial we weren’t expecting any significant measures to relieve the burden of business rate, so the Budget announcement is more welcome than anticipated, although not as fundamentally as hoped and certainly not in line the Chancellor’s promise of a fairer, simpler tax system.
Jack Griffiths, cofounder and CEO of Snuggy luxury loungewear, based in Teesside told MailOnline: “The freeze on business rates multiplier was welcome, but I would like to have seen a little more support for small-businesses.
Mr Sunak told MPs that the cancellation of next year’s increase in the multiplier will save around £4.6bn over the next four years
“We have had a difficult 12 months due to the ongoing effects of COVID-19 and, most recently, supply chain problems. So I would have liked to have seen more support to help us get through the Christmas period, and into the New Year.
Others questioned why the Chancellor had not used his Budget to unveil an online sales tax – although he did announce the start of a consultation.
Scott Parsons, UK chief operating officer at Unibail-Rodamco-Westfield’s, which is behind the Westfield centres in London, was one of those expressing his disappointment.
He said that the decision of the Chancellor to keep the e-commerce sector tax-free is yet another blow to bricks and mortar retailers who continue to operate in an uneven playing field.
The Chancellor announced a series reforms to alcohol taxes starting in February 2023, including a 5% reduction in duty on draught beverages. This is a further boost for pubs.
“This is the largest reduction in cider duty since 1923. The largest reduction in fruit ciders in a generation. He said that the biggest reduction in beer duty in 50 years was achieved.
‘It’s a long-term investment in British pubs of £100m a year. A permanent reduction in the cost per pint by 3p.
Mr Sunak also announced a planned increase in duties would be cancelled – a tax cut worth £3bn..