Hospitality, Retail And Leisure To Be Given 50% Discount On Business Rates
As part of his Autumn Budget and Spending Review, Rishi Sunak announced that the hospitality, retail and leisure sectors will be given a 50% discount on business rates for one year to support their post-pandemic recovery.
Business rates apply to most non-domestic properties, including restaurants, pubs, cinemas, theatres, music venues, hotels, and gyms. The 50% discount is a tax cut worth £1.78 billion, the largest single-year cut to business rates in 30 years, except for the emergency pandemic reliefs.
In his Autumn Budget and Spending Review speech, the Chancellor of the Exchequer said that abolishing business rates altogether would be an irresponsible move, as they generate £25 billion for the economy. However, Sunak said that to make business rates fairer, they will be re-evaluated every three years.
Properties that are eligible for the discount will receive up to 50% off their bill, subject to a cap of £110,000 per business. This is more than double the relief announced pre-pandemic for the 2020-21 financial year.
Turning to Twitter, Sunak said the move was “a tax cut worth almost £1.7bn and with Small Business Rates Relief over 90% of all these businesses will see a discount of at least 50%. Taken together, today we cut business rates by £7bn.”
“We’re taking steps to ease the burden of business rates and boost our high streets […] Without action, millions of businesses would see their tax bills going up next year because of inflation,” Sunak continued, “So I’ve decided that next year’s planned increase in the multiplier will be cancelled. That’s a tax cut for business worth £4.6bn over the next five years.”