Chancellor John Healey has announced a major overhaul of business rates for retail, hospitality and leisure businesses in his autumn Budget, increasing the small business rate relief threshold from £12,000 to £18,000.
The move means an estimated 70,000 more businesses in the sector - around half of the country's shops, restaurants and gyms - will no longer pay business rates at all.
First Budget Under Andy Burnham's Government
Mr Healey set out the autumn Budget earlier today, marking the first under Andy Burnham's leadership of the country. The Chancellor, who took over from predecessor Rachel Reeves, opened his statement by saying it was for "the working people of Britain, for British businesses, big and small", and pledged not to raise taxes on "working people".
Prior to the announcement, Mr Healey said the government would move to ease the cost of living "responsibly" by sticking to Labour's self-imposed fiscal rules. "Breathing space for today and fresh hope for the future. That's what today's Budget will deliver," he said.
Relief for Retail, Hospitality and Leisure
The Budget offered "fresh hope for the future" for the country's retail, hospitality and leisure businesses, including pubs, clubs, restaurants and gyms. Mr Healey, formerly defence secretary under Sir Keir Starmer, told the Commons that the government had already cut 20 per cent of business rates from pubs, clubs and music venues from next April.
"I'm increasing the threshold for Small Business Rate Relief for retail hospitality and leisure businesses from £12,000 to £18,000," he said. "That means, for 70,000 more businesses I'm not just cutting their rates, I'm taking them out of paying business rates altogether, meaning half of our shops, restaurants and gyms will now pay no business rates at all. For all other businesses in these sectors, I will freeze their rates in real terms so that none face an above-inflation rise for two years."
Other Budget Measures
The announcement, made in parliament at midday, featured tariffs on a number of supermarket products, an extension of the 5p fuel duty until July, and a £100 winter energy payment for households paid directly into bank accounts.
The Chancellor also confirmed that the national minimum wage and national living wage would increase by 3.9% for 2.3 million workers, taking it above £13 an hour for the first time. He also announced he would be hiking gambling taxes to pay for a high street support package, including increasing machine games duty from 20% to 25% for higher stakes machines.
Mr Healey said: "To pay for this support for our high streets, I am raising taxes on gambling by increasing machine games duty from 20pc to 25pc for higher stakes machines, while protecting pubs and seaside arcades. I will carve out adult gaming centres and vape shops from business rate reliefs, and extend the business rates transitional relief supplement for a further two years."
