Budget 2020 - Small Wins Warn of Impending Challenges for the Future
Small retail, leisure and hospitality businesses will be exempt from paying business rates for one year as part of an emergency budget to protect the economy from the impact of the coronavirus outbreak.
All retail, leisure and hospitality businesses with a rateable value of less than £51,000 will be exempt from paying business rates over the next financial year, as announced by the chancellor on 11th March 2020.
The Conservative manifesto had previously pledged to increase business rates discounts for shops, cinemas, and restaurants with a rateable value of less than £51,000 to 60 per cent.
Chancellor Rishi Sunak announced that business rates for those firms will be abolished for one year.
He also extended the 100 per cent discount to all eligable retail and leisure businesses, including museums, galleries, gyms, nightclubs and guesthouses.
Mr Sunak said: “Museums, art galleries, and theatres; caravan parks and gyms; small hotels and B&Bs; sports clubs, night clubs; club houses, guest houses. They would not benefit from today’s measure – but they could be some of the hardest-hit. So, for this year, I have decided to extend the 100 per cent retail discount to them as well.”
“That means any eligible retail, leisure or hospitality business with a rateable value below £51,000 will, over the next financial year, pay no business rates whatsoever. That is a tax cut worth over £1bn, saving each business up to £25,000.”
However, with new rateable values coming into effect from 1st April 2021 it is likley that many businessess will be faced with the highest increases that they have ever faced – which is why it is vital to challenge your current rateable value and mitigate against these future increases.
Hampton Lovett are well placed to assist with any questions that you may have regarding this matter. If your business is within the sectors benefitting from the relief mentioned in the Budget, but your Rateable Value is over £51,000 – contact us to find out how we can help on 0800 025 3666.