Mr Sunak said he wanted to “help small businesses now” and the Conservatives were once again “delivering for British businesses” as the average pub with a rateable value of £21,000, would save £5,200 thanks to the proposed new rates.
The Chancellor also announced the business rates multiplier would be frozen in 2022-2023; a tax cut for all ratepayers worth £4.6bn over the next 5 years.
However, trade bodies, operators and businesses across the sector expressed disappointed with this year’s Spring Statement, in particular with regards to business rates.
Founder and CEO of tech-led accountancy and advisory firm, Virgate, Sarah Travell said: “The business rates discount of 50% is welcome but in reality, will help only the smallest businesses in the sector.
Lacking vital support
“Clearly it is going to be a challenging 6 to twelve months and the businesses that will emerge in the best shape are those with the ability to understand every facet of their business and their finances in real time, particularly their trading position, cash position and real-time margins across the breadth of their operations.”
It was also stated there would be no business rates due on a range of green technology used to decarbonise buildings, including solar panels and batteries, whilst eligible heat networks will also receive 100% relief, saving businesses more than £200m over the next 5 years.
Mr Sunak said in his statement the “tax plan announced today will help people and businesses deal with rising costs”.
However, as many hospitality businesses face Covid debt and increasing costs across the board, some felt today’s statement lacked vital support for the sector and a reform of business rates was much needed.
No new support measures
Admiral Taverns CEO Chris Jowsey said: “I’m disappointed the Chancellor has not announced any new support measures for the pub and brewing industries, which together contribute £26.2bn to the UK economy each year.
“Industry trading volumes have not yet returned to pre-pandemic levels and its vital the Government continue to invest in the sector at this critical juncture as support measures come to an end.
“Our licensees worked incredibly hard to sustain community pubs throughout the pandemic and yet their businesses are now being put at risk by further rising costs such as energy and food prices.
“If community pubs up and down the country are to keep their doors open and, in doing so, maintain the jobs of the 936,000 people employed in these industries, I urge the Government to consider further support through the immediate introduction of lower beer duty (currently planned for 2023) and much needed reform of business rates.”
