Rishi Sunak has announced huge business rates discount to help support the economy.
Chancellor says the government are ready and willing to act on threat of inflation and has written to BoE to reaffirm remit to deliver low and stable inflation – locking in the 12.5% VAT for hospitality is one key way of delivering this.
The long awaited Autumn Budget announcements from the chancellor revealed there will be a new one year 50% business rates discount for retail, hospitality, and leisure sectors.
Mr Sunak said this is a tax cut worth almost £1.7bn – and added that, with Small Business Rates Relief, more than 90% of all these businesses will see a discount of at least 50%.
He confirmed business rates would be retained and reformed, telling MPs: “We on this side of the House are clear that reckless, unfunded promises to abolish a tax which raises £25 billion every year are completely irresponsible.”
The Chancellor added: “First, we will make the business rates system fairer and timelier with more frequent revaluations every three years. The new revaluation cycle will be delivered from 2023.”
He went on: “We’re introducing a new investment relief to encourage businesses to adopt green technologies like solar panels. And I’m announcing today that we’ll accept the CBI and the British Retail Consortium’s recommendation to introduce a new ‘business rates improvement relief’.
“From 2023, every single business will be able to make property improvements – and, for 12 months, pay no extra business rates.”
Mr Sunak said his third step would be to cancel next year’s planned increase in the multiplier, adding: “I’m announcing today, for one year, a new 50% business rates discount for businesses in the retail, hospitality, and leisure sectors.”