Budget 2021: Hospitality and retail to get 50 per cent discount on business rates
Chancellor Rishi Sunak has announced a one-year 50 per cent business rates discount for retail, hospitality and leisure sectors.
Any eligible business in these sectors can claim a discount of up to 50 per cent up to a maximum of £110,000 – a business tax cut worth almost £1.7bn.
Under reforms, system property valuations would be reviewed every three years, rather than every five and the business rates multiplier would be frozen for a second year.
He said he would retain the system with “key reforms to ease burden and create stronger high streets.”
“We on this side of the House are clear that reckless, unfunded promises to abolish a tax that raises £25bn every year are completely irresponsible,” he said.
Businesses had called for a radical overhaul of the system and said they would be keen to see the details of what the Chancellor had outlined at the dispatch box on Wednesday.
UKHospitality’s chief executive, Kate Nicholls, today said: “We have been lobbying hard for significant reform of the outdated business rates system and therefore very much welcome the Chancellor’s move today to extend the 50 per cent business rates relief for the hospitality and leisure sector for the next financial year.
“The devil will be in the detail, though, so we look forward to learning to what extent it will benefit businesses.”
Robert Hayton, UK President at the real estate adviser Altus Group, said the Chancellor had delivered upon the Government’s manifesto pledge to lower the business rates burden through a £7bn cut.
Hayton added: “Cancelling inflationary rises next year while avoiding a cliff edge for retail, leisure and hospitality through a continuation of rates relief in April, albeit it at a lower rate, with tax incentives to reduce environmental damage, coupled with more frequent revaluations, and tax holidays to stimulate investment, is a compelling basket of support which will aid the recovery. ”