Talking Retail Grocery and product news for independent retailers
Speaking about small businesses, Hunt said: “The biggest frustration is the tax they pay before making a profit, not least business rates.
“We have frozen the tax rates for the last three years and for retail, hospitality and leisure business we’ve introduced a one year 75% discount on business rates up to £110,000 and those measures have saved the average independent shop over £20,000.
“It’s not possible to continue with temporary support measures forever but, whilst the standard multiplier which applies to high value properties will rise in line with inflation, I have today decided that we will freeze the small business multiplier for a further year.
“And following extensive discussions with the FSB and many colleagues in this house, I’ve also decided to extend the 75% business rates discount for retail, hospitality and leisure for another year.”
ACS chief executive James Lowman said: “We welcome the extension of the retail and hospitality reliefs on business rates, which will help thousands of retailers with the cost of trading during what remains an extremely challenging time. There remain fundamental issues with the business rates system that need to be addressed to provide fairness across the system in the long term, but today’s announcements will provide a much-needed boost to investment.”
ParcelHero’s head of consumer research, David Jinks M.I.L.T., said: “The government has again failed to tackle business rate reform, leaving many retailers and businesses in a state of limbo for another year.
“Yes, the Chancellor announced the reapplication of the sticking plaster that is the small business multiplier for a further year. He has also continued the 75% discount on business rates up to £110,000 for retail, hospitality and leisure businesses for another year.
“Although that should save the average independent shop over £20,000 next year, it still leaves the eventual resumption of these rates hanging like the sword of Damocles over many much-loved local stores. Businesses will find it hard to plan for the future until there is a proper solution to the vexed issue of rates.”
