Budget in brief for Pubs regarding Business Rates
Coronavirus Action from Whitehall for the year 1-4-2020 to 31-3-2021
- All sites with Rateable Values below £51,000 will pay no rates in the year 2020-2021, this will include all retail, leisure and hospitality properties.
- A further £3,000 grant is available for all sites that at present claim any portion of the Small Business Rate Relief, RV sub £15,000.
- A full review of the Business Rates system will be presented as part of the Autumn Budget.
- Time to pay Corona Loans will be backed by the Government for those in need of stop gap loans.
- The proposed £1,000 Pubs relief for sites with RV lower than £100,000 will be increased to £5,000 for 1 year.
- No Duty rise on any wine, cider, spirits or beer.
- £500,000,000 hardship fund for all businesses allocated by Local Authorities.
- Not certain at this stage if EU State Aid Limits are still applicable..
This Budget goes a long way to help Pubs for the next year but Harris Lamb will continue to push for refunds and reductions back to 1-4-2017 to assist Publicans now and going forward. Please do not think this Budget means anything more than a short term rebate in the tax on Pubs and continue to contact us to review and challenge Rateable Values wherever a site needs assistance.
The following information has been lifted from the GOV.UK website:
2.32 Business rates
Business rates retail discount – The government has already announced that, for one year from 1 April 2020, the business rates retail discount for properties with a rateable value below £51,000 in England will increase from one third to 50% and will be expanded to include cinemas and music venues. To support small businesses in response to Covid-19 the retail discount will be increased to 100% and expanded to include hospitality and leisure businesses for 2021. (26)
Business rates pubs discount – The government previously committed to introducing a £1,000 business rates discount for pubs with a rateable value below £100,000 in England for one year from 1 April 2020. To further support pubs, in response to Covid-19 the discount for pubs will be increased to £5,000. (27)
Local authorities will be fully compensated for the loss of income as a result of these business rates measures.
View the GOV.UK website here: www.gov.uk/government/publications/budget-2020-overview-of-tax-legislation-and-rates-ootlar