Boris Johnson tells firms to ‘wait for Budget’ for verdict on business rates holiday extension
Boris Johnson has said there will be no announcement on a potential extension to the business rates holiday until the 3 March Budget.
The Prime Minister told MPs today that the “government is committed to supporting businesses and people’s livelihoods throughout the pandemic” and that UK businesses should “wait for the chancellor’s Budget to explain exactly what we’re going to do”.
Several major business groups, including the CBI, have called for the government to extend the business rates holiday before next month’s budget.
The emergency measure is due to end on 31 March, however the CBI said firms need clarity around whether the business rates holiday will be extended well in advance on this date.
Labour leader Sir Keir Starmer said at Prime Minister’s Questions (PMQs) that “hundreds of thousands of businesses are affected by this” and that “businesses don’t work as slowly as the Prime Minister – they need an answer now” on a potential extension of the rates holiday.
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Robert Hayton, UK president of property tax at the real estate adviser Altus Group, said he agreed with Starmer.
“A total of 358,264 occupied retail, leisure and hospitality premises will be returned to full business rates on 1 April having had a £10.13bn rates holiday in England this financial year,” he said.
“This could create a cliff edge without an extension.”
Johnson said: “Most businesspoeple I’ve talked to, and I’ve talked to a great many in the last 12 months, would agree that there is no government in the world that has done more to support business, wrapping our arms around business.”