Targeted Support for Businesses

Easing cost pressures across retail, hospitality and leisure

The Chancellor of the Exchequer, Mr Healey, said the Budget includes measures to support small businesses, protect local venues and ease cost pressures across the retail, hospitality and leisure sectors. These measures are intended to help businesses manage operating costs, maintain their presence on high streets and in local communities and support the long-term sustainability of sectors that make an important contribution to employment and economic growth.

He said the package combines targeted business rates relief, a freeze on rates for eligible properties and additional support for small alcohol producers, while introducing measures to ensure online businesses meet their VAT obligations.

Key measures include:

•     Reducing business rates for pubs, music venues and social clubs by funding an additional 20% reduction, alongside an increase in the Small Business Rate Relief threshold, so that a further 70,000 retail, hospitality and leisure businesses pay no business rates. The Government will fund these measures by ensuring that businesses with significant online sales pay the VAT they owe and by requiring online marketplaces to collect it on their behalf.

•     Freezing business rates for other retail, hospitality and leisure properties for two years ensures that no property in these sectors faces an increase above inflation. Taken together, the measures mean that, from April, retail, hospitality and leisure businesses in England will see their business rates frozen in real terms, reduced, or cut to zero.

•     Providing additional support for small alcohol producers by making Small Producer Relief within the Alcohol Duty system more generous, delivering £10 million per year in support to more than 2,000 small alcohol producers across the UK.

“The Budget will provide targeted support to businesses, helping small firms manage costs, protecting local venues and supporting businesses that play an important role in communities across the country,” said the Chancellor of the Exchequer, Mr Healey.

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