The Government has introduced a new temporary business rates relief in England for eligible businesses in the retail, hospitality and leisure sectors for 2022/23, so they continue receiving support as they recover from the pandemic.
Chancellor Rishi Sunak unveiled the policy in his Autumn Budget 2021 speech in Parliament, where he revealed businesses in some of hardest-hit trades, such as pubs, cinemas, gyms and hotels, will be able to claim a 50% business rates discount, up to a maximum of £110,000.
In Parliament, Sunak said over 90% of all retail, hospitality and leisure businesses would benefit from the tax cut worth around £1.7 billion.
"Apart from the COVID-19 reliefs, this is the biggest single-year tax cut to business rates in 30 years", he added.
Kate Nicholls, chief executive of UKHospitality, said:
"We very much welcome the Chancellor's move today to extend the 50% business rates relief for the hospitality and leisure sector for the next financial year.
"The devil will be in the details, though, so we look forward to learning to what extent it will benefit businesses".
Helen Dickinson, chief executive of the British Retail Consortium, commented:
"While the Government's 50% bridging relief for 2022/23 may prove to be beneficial for the smallest businesses, it will do little to support the businesses that pay two thirds of retail business rates and employ 1.5 million people.
"With no reduction in the burden, this will lead to the unnecessary loss of shops and jobs and fails to incentivise investment in all parts of the country."
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