Skip to main content

Rishi Sunak announces 50% business rates discount for retail but avoids major reform

// Chancellor Rishi Sunak unveils a raft of measures to reduce business rates
//  The changes are likely to be welcomed by retail chiefs, although there will be some disappointment that there has not been a fundamental overhaul of the system

Rishi Sunak has temporarily reduced business rates in a reprieve for thousands of Covid-hit retailers and is drawing up plans for the levy to be replaced with an online sales tax.

The Chancellor handed a 50pc rates discount worth £7 billion to high street shops, pubs and restaurants hammered by the pandemic, in the biggest cut to the tax in 20 years.

However, he insisted it would be “wrong” to give in to demands from Labour for the rates system to be scrapped altogether unless it can be replaced with another source of revenue as they are worth £25 billionn.

READ MORE:

Instead, Sunak revealed “key reforms” where there will be more frequent revaluations, every three years, which he said would make the system fairer.

Investment relief will be available to reward green initiatives, such as the installation of solar panels, as well as improvement relief which will be offered for 12 months following enhancement of premises – the latter lobbied for by the BRC and other business groups.

Mr Sunak is now drawing up a consultation on an online sales tax which would replace income lost from rates reform as part of a wider shake-up.

Subak also cancelled next year’s planned increase in the business rates multiplier and said businesses in retail, hospitality and leisure would be entitled to a one-year business rates discount of 50 per cent.

British Retail Consortium chief executive Helen Dickinson said: “Today, the Chancellor spoke of a new age of optimism, but retailers will struggle to share his confidence after a Budget that does not do enough to reduce the burden of costs bearing down on our shops, our high streets and our communities.

“This budget is a missed opportunity for retail and the three million people who work in the industry, and it prevents retail from maximising its contribution to the government’s levelling up agenda.”

Click here to sign up to Retail Gazette’s free daily email newsletter

The post Rishi Sunak announces 50% business rates discount for retail but avoids major reform appeared first on Retail Gazette.



from Retail Gazette https://ift.tt/2XSqJXn
via IFTTT
Labels:

Comments

Post a Comment

Popular posts from this blog

Eagle Labs launches impirica CBD brand

ST. PETERSBURG, Fla. — Eagle Labs has launched impirica, a new brand of CBD intended to eliminate consumer fear, and increase confidence, in trying the exciting new cannabidiol category. Michael Law Although most Americans have now heard about CBD, many are very confused and concerned about product quality. This is inhibiting trial in the category and holding back conversion into sales. In fact, a 2017 study by Johns Hopkins University found that two out of three CBD products on the shelf did not contain the amount of CBD reflected on the label. Furthermore, in 2018 and 2019, the FDA sent notices to a substantial number of CBD manufacturers advising them of serious concerns about product quality or egregious medical claims. The impirica brand looks different than most CBD brands — the brand name itself connotes testing and trust, says Eagle Labs chief commercial officer Michael Law. “It doesn’t use the traditional category colors of browns and greens, and you won’t find a hemp...
70 comments
Read more

Sagar Daryani, CEO and Co-founder – Wow! Momo & Saga: From a Kiosk to a Kingdom

Sagar Daryani’s entrepreneurial odyssey from humble beginnings to pioneering success has redefined the landscape of food startups in India. Co-founding Wow! Momo, he has spearheaded the growth of the largest indigenous QSR chain in the country, crafting a remarkable saga of triumph The Genesis: A Visionary Venture Takes Root In 2008, armed with a mere Rs. 30,000 and boundless ambition, Sagar Daryani and Binod Homagai embarked on their entrepreneurial journey while still pursuing their graduation in B.Com Hons from St. Xavier’s College, Kolkata, even before their college results were out. They knew the value for money and boot-strapped to plough back profits and grow their venture. Sagar spearheaded brand expansion, brand creation, and marketing and retail operations. Grew across the city with a strong consumer focus. The early days were hard but keeping track of the money flow was even harder. Believing in the concept of ‘1 rupee saved is 5 rupees earned’, and the lessons they lear...
1 comment
Read more

Homegrown ice cream chain HOCCO to open 250 stores, eyes Rs 400 crore by FY26

Ankit Chona, Founder and Managing Director of HOCCO, delves into the company’s revenue model, growth strategies, and vision for the future… Bengaluru: HOCCO (House of Chonas Collaborative) , the Ahmedabad-based ice cream and quick-service restaurant (QSR) chain, boasts a rich legacy spanning over 70 years, with roots tracing back to pre-independence India. The Chona family has been deeply entrenched in the food industry since 1944, originally operating in undivided Pakistan. Following the Partition, Satish Chona , an engineer with British Overseas Airways Corporation, relocated from Karachi to India. After journeying through multiple cities, he ultimately settled in Ahmedabad, where he established his first QSR outlet in 1953. Three decades later, he expanded into the casual dining segment, launching a restaurant in Baroda while continuing the family’s ice cream manufacturing business. However, in 2017, the company sold its ice cream division to a South Korean firm, shifting its fo...
1 comment
Read more