The Chancellor of the Exchequer confirmed in his Autumn Statement two new rate reliefs for high street businesses – halving business rates for those taking on empty properties, and giving a £1000 rebate to high street retailers, including retail hospitality, recognizing the importance of investment by pubs and restaurants in the creation of a sustainable high street. He also capped all business rate increases in 2014 at 2% and rolled over small business rate relief for another year.
Leading trade bodies welcomed the news. The ALMR welcomed today’s measures as a ‘welcome boost for a hard pressed high street’, with Strategic Affairs Director, Kate Nicholls, saying:
“Business rates are a major burden on our members – next April’s increase alone could have sucked £58m out of the sector. That is cash that would otherwise have been spent on our property and our people and so we have been campaigning hard this year to get politicians to understand that a tax on property and business is a tax on jobs and investment. We are delighted that the Chancellor has responded so positively to all our proposals and we look forward to working with him on the root and branch reform of the regime ahead of the next revaluation in 2017.”
The BBPA also welcomed the Chancellor’s decision in his Autumn Statement to extend Small Business Rate Relief to April 2015, which will avoid a massive £27 million bill for thousands of pubs across the country – as campaigned for by the Better Rates for Pubs campaign.
38,000 (three in four) pubs will get a £1,000 reduction in their rates bill, as they have a rateable valuation of less than £50,000, whilst the decision to cap increases in Business Rates to two per cent is also a very positive move that will help pubs to avoid £7.8 million on the previously proposed increases.
Brigid Simmonds OBE, BBPA Chief Executive, commented:
“These are very positive steps on Business Rates, and the Chancellor was right to champion pubs in his speech. We welcome the Chancellor’s decision to extend Small Business Rate Relief which was one of the first objectives of the Better Rates for Pubs campaign. It shows real support from the Government for pubs, and that BBPA calls are being heeded.
“It is also very good news for rural pubs that the proposed increase in fuel duty has been scrapped.”