INDUSTRY NEWS
Retailers set to benefit from business rates reductions A 50% reduction in rates for the next financial year was announced in the Budget.
Most independent retail businesses in England are to get a 50% reduction in their business rates next year as part of a range of measures announced in this year’s Budget. The new temporary business rates relief will see retail, hospitality and leisure properties receive 50% relief for 2022-23, up to a maximum of £110,000 per business, Chancellor Rishi Sunak announced.
property valuations will also take place every three years instead of every five.
At the same time, Sunak said that the Business Rates Multiplier, which adjusts the annual rates bills upward to
The changes are so far only confirmed for England. The
account for inflation, will be frozen for 2022–23.
Budget announcements for the devolved governments in Scotland and Wales will take place in December.
Further changes to the business rates system include a new system of improvement relief, meaning that retailers who
Announcing the changes, Sunak said: “We’re taking steps
invest in their properties will not see a subsequent rise in
to ease the burden of business rates and boost our high
their business rates for the first 12 months starting from
streets.
April 2023. “The new one-year, 50% business rates discount is a tax cut Sunak ruled out scrapping the business rates system
worth almost £1.7bn and, combined with Small Business
completely, a move that had been asked for by many
Rates Relief, over 90% of all these businesses will see a
industry bodies, but added that, from 2023, business rates
discount of at least 50%.”
Alcohol duty system to be simplified Chancellor Rishi Sunak announced a major shake-up of
will come down but those on red wine are likely to go up,
alcohol duties in the recent Budget.
for example. Reduced rates will apply for products below 3.5% ABV, while a small producer relief will reduce the tax
The government intends to restructure alcohol duty so that
burden on smaller producers of drinks below 8.5% ABV.
all beverages will be taxed in direct proportion to their alcohol content rather than having different duty regimes
Current duty rates on beer, cider, wine and spirits were
for each type of product. A consultation will be carried out
frozen for another year in the Budget.
on the reforms with a view to introducing the new regime in 2023.
Proposed increases in fuel duty were also scrapped, while tobacco duties were increased with effect from October
Under the proposed regime, duty levels on sparkling wine
27th.
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