Relief for the high street as business rates are frozen

RETAILERS were handed a £5.4billion business rates break in the Budget thanks to a major package of support.

Jeremy Hunt answered calls to freeze a planned increase in business rates, which would have cost firms £3.2billion in April.

He also extended a relief scheme that gives small retail, hospitality and leisure businesses 50 per cent off their bills – and increased the discount to 75 per cent. It was due to expire in April but will run for an additional year.

And while the Government will press ahead with a planned reset of business rates, which will land some with higher bills, affected firms will be given three years to adjust to the higher rates.

Those whose bills drop in April’s revaluation – which alters bills to reflect changes in the rental market – will see the benefits immediately. The cost of the package next year will be £5.4billion, with total support of £13.6billlion over the next five years.

In a rare bright spot in yesterday’s Budget, Mr Hunt said: ‘Nearly two thirds of properties will not pay a penny more next year and thousands of pubs, restaurants and small high street shops will benefit.’ Business leaders welcomed the relief, saying it would save thousands of high street businesses from collapse and help keep a lid on spiralling inflation.

The British Retail Consortium said the Government has ‘heard the concerns’ of the industry as it works to support shoppers with the rising cost of living. Boss Helen Dickinson said: ‘This Autumn Statement supports that commitment by reducing upwards pressure on prices in the short term, and helping retailers protect jobs, keep shops open, and protect the vibrancy of local communities.’ Trade body UKHospitality also welcomed

‘Help retailers protect jobs’

the package but said that fundamental reform of the controversial business rates system was still needed.

Chief executive Kate Nicholls said: ‘It remains the case that the current system is outdated and not fit for purpose. The Government made a manifesto commitment of root and branch review and it’s essential that this is delivered as soon as possible.’