Sunak announces relief of 50 per cent for hospitality and leisure businesses
Hospitality, retail and leisure firms will get a 50 per cent business rates discount for a year to help them through the continuing damage caused by the pandemic.
In his Budget speech, the chancellor said any eligible businesses, including shops, pubs and leisure centres, will see the tax on their premises slashed for a year, up to a value of £110,000.
Rishi Sunak also said he would make the system “fairer and timelier” revaluations with more frequent revaluations every six years, starting in 2023.
However, Rishi Sunak stopped short of granting business groups their wish of overhauling the widely disliked tax.
The tax cut for hospitality, retail and leisure firms came as part of a package of measures the chancellor announced to support struggling pubs.
The government will overhaul of taxation on alcohol, with higher rates for stronger drinks and lower rates for weaker ones – a measure Mr Sunak said would benefit public health.
The Chancellor told MPs: “It will apply to drinks served from draught containers over 40 litres. It will particularly benefit community pubs who do 75 per cent of their trade on draught. Let me tell the House the new rate: draught relief will cut duty by 5 per cent.
“That’s the biggest cut to cider duty since 1923. The biggest cut to fruit ciders in a generation. The biggest cut to beer duty for 50 years. This is not temporary, it’s a long-term investment in British pubs of £100 million a year. And a permanent cut in the cost of a pint by 3p.”
Mr Sunak said the reforms will come into effect in February 2023.
Pubs will also benefit from a cut to tax on draught beer, to encourage drinking in pubs rather than in the home. Mr Sunak announced “draught relief” – a new, lower rate of duty on draught beer and cider.
A planned increase in duty on spirits like scotch whisky will all be cancelled from midnight tonight, a tax cut worth £3bn, the chancellor said.