The major points affecting hospitality include:
- A full review of the business rates system, with results due at the 2016 Budget
- Two per cent cap on the inflation-linked increase in business rates has been extended for another year to April 2016
- High street shops, pubs and cafes with a rateable value of up to £50,000 will get a £1,500 discount on business rates – up 50 per cent on the £1,000 Help for the High Street discount introduced last year.
- The doubling of small business rate relief will be extended to April 2016
- National Insurance on young apprentices abolished
- Increases in small businesses access to funds, and expansion of the British Business Bank
The Statement attracted prompt reactions welcoming some initiatives and regretting the failure to do more:
ALMR welcomes measures to support high street businesses
Responding to the Autumn Statement, the ALMR welcomed the decision to review business rates and measures to support high street businesses in the UK, with Chief Executive, Kate Nicholls saying:
“We are pleased to see the Chancellor recognising the enormous contribution that high street businesses make to the UK economy and taking steps to address the disproportionate burdens that those businesses face.
“The ALMR has repeatedly called for a root and branch reform of a business rates system that currently sees pubs and bars paying 15 pence per pint in rates compared to about 1 penny per pint in supermarkets. The UK’s high streets are more highly taxed than any other property market in Europe and this is clearly stifling investment.”
Nicholls concluded: “Measures to improve access to finances for small businesses are also welcome. The licensed hospitality sector employs 8% of the UK’s workforce and venues generate around £235k GVA for their local economies. Increased investment in the sector, accompanied by a freeing-up of money from a welcome abolition of NICs for young apprentices, will allow our businesses to continue investments of their own providing much-welcome jobs and growth throughout the country.”
BBPA: over 70% of pubs to receive retail relief
BBPA Chief Executive, Brigid Simmonds, comments:
“I am very pleased to see that small business rate relief has been extended for a further year today. The increase in the retail relief to £1,500 is more good news that will benefit 64 per cent of pubs. Overall, over 70 per cent of pubs will receive retail relief.
“For pubs, the current Business Rates regime makes up ten per cent of costs. As well as getting bills down, we need to make it easier for pubs to appeal their rates bills and make the system more responsive to changing business conditions. The Government is certainly giving increasing attention to this important issue for pubs.
“I also welcome the removal of National Insurance payments for apprenticeships for those under 25. The pub industry can create many jobs and careers for young people quickly, with around 45 per cent of the country’s 600,000 pub employees under 25. Making it easier to create more apprenticeships is good news.”
Cut Tourism Vat campaign welcomes cut in APD
Graham Wason, chairman of the campaign said:
“The CTV campaign applauds the announcement of a further cut in APD (Airline Passenger Duty) and is delighted that this Government is beginning to address barriers to the competitiveness of UK tourism. We hope that cutting tourism VAT will be next. Independent research shows that cutting tourism VAT gives a significantly greater boost to British exports as it encourages UK residents to take more days out, short breaks and holidays in the UK, at the same time increasing overseas visitors to the UK.”
However, Grant Hearn, chairman of The Hotel Collection, commented:
“In failing to cut VAT on accommodation and attractions, the Chancellor has missed a golden opportunity to introduce a policy that would have created jobs for the young and give struggling regions outside of London a real boost.”
CAMRA welcomes further help for pubs
CAMRA Head of Communications Tom Stainer:
“With 31 pubs closing every week, the Chancellor’s extension of small business rate relief and an additional £500 business rates reduction for most pubs in England is great news for pub goers. Business rates are a significant burden on pubs and so these announcements will help keep pubs open, boost investment and ensure consumers continue to benefit from great pubs.
“The review of Business Rates also provides an opportunity to address the disproportionate tax burden on pub beer sales compared to supermarket beer sales.”