FEATURE
What does the Budget and SR21 mean for retailers? Tabitha Walker from the Association of Cycle Traders (ACT) outlines the key points for cycling businesses...
The Chancellor announced a new 50% business rates discount for companies in the retail, hospitality, and leisure sectors, lasting for one year.
Alongside the Small Business Rates Relief, Sunak claimed his
measures would mean more than 90% of retail, hospitality and leisure businesses will see a discount of at least 50%. “Apart from the Covid reliefs, this is the biggest single-year
cut to business rates in 30 years,” he said. The business rates multiplier will be frozen for 2022/23 at 49.9p for properties under £51,000 RV and 51.2p for those above, meaning bills are 3% lower than projected. From 2023, a new business rates relief will incentivise property
improvements by delaying consequent increases in bills for 12 months. Transitional relief has been extended for one year, restricting bill increases to 15% for small properties (up to £20,000 RV) and 25% for medium properties (up to £100,000 RV), subject to subsidy control limits. The Government has published a consultation on introducing
a UK-wide Online Sales Tax, where revenue would be used to reduce business rates for bricks and mortar stores. Various Independent Retailers Confederation (IRC) members
have commented on the new business rates within the budget and how it will impact their members. Chris Hall, director of the ACT commented that the reduced business rates are “welcome news for cycling retailers”. He added: “This is exactly what the ACT together with other IRC organisations have been pushing for over many years.” British Independent Retailers Association CEO Andrew Goodacre said: “Whilst we would have liked to have seen a more fundamental review of business rates, we are pleased to see some respite for the smaller, independent retailers. The retail discount for business rates was a positive move when first introduced in 2019 and it is right that it is now reintroduced. We also think that the incentive to encourage investment in equipment to reduce the carbon footprint of shops is a good idea.” However, he also went on to point out: “The rates bill for this year was reduced to 25% (of normal levels). This was done in response to Covid. Reducing rates by 50% next year is in fact a 100% increase on what businesses are actually paying. On top of everything else, this will be a challenge.” The National Living Wage rate will be £9.50 from 1st April 2022. This is a 6.6% increase on the £8.91 rate for 2020/21. The Government remains committed to raising the NLW so that it reaches two-thirds of median earnings and applies to workers aged 21 and above by 2024, subject to economic conditions.
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