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In the Autumn Statement, the government has announced that from April 2023, it will provide business rates support in the following headline areas:
- The business rates multiplier will be frozen at its current level in 2023-24
- Business rates relief for eligible retail and hospitality businesses will increase from 50% currently to 75% in April 2023, up to a maximum of £110,000 of relief per business
- A new Supporting Small Businesses Scheme (SSBS) will cap the bill increases for those losing their eligibility for Small Business Rate Relief or Rural Rate Relief to a maximum of £50 extra a month in 2023-24
ACS chief executive James Lowman said: “We welcome the freeze of the business rates multiplier for another year. The extension and increase in the retail, hospitality and leisure relief scheme will be warmly welcomed by small business in particular. Scrapping downward transition will help the businesses most adversely impacted by the pandemic and other market factors, and the Supporting Small Business Scheme will help those who have grown their business to the point where they lose some business rates relief they previously claimed.
“This package of business rates measures meets our asks to the Chancellor and and we are delighted that he has listened. We will continue to work with the Treasury and other departments on modernising the whole business rates system.”
During the Statement, the Chancellor Jeremy Hunt announced that the Government would accept the recommendations of the Low Pay Commission, keeping the National Living Wage on target to reach two-thirds of median earnings by 2024.
On wage rates, Lowman said: “The increase in the National Living Wage to 10.42 is in line with established government policy to reach two-thirds of median earnings by 2024. This will mean tough decisions for businesses like convenience stores for whom their wage bill is their biggest cost area, and this increase of over 9% will be challenging to bear.”
The Autumn Statement has also confirmed that the second round of the Levelling Up Fund will allocate at least £1.7bn to priority local infrastructure projects.
“The continuation of levelling up funding is good news, but this needs to be focused on neighbourhoods and communities close to where people live, which are often the places where convenience stores trade,” said Lowman.
“Two-thirds of people would rather money was invested in creating safe local neighbourhoods and supporting the businesses operating there, rather than on major city and town centres.”
While domestic support on energy costs beyond April 2023 was set out in the Autumn Statement, there was no announcement about the level of support being provided to businesses in the Spring. ACS has previously called on the Government to ensure that convenience stores are included in the list of essential vulnerable businesses that will receive additional help with their energy bills in 2023.
“Increases in energy bills are the single biggest concern facing retailers at the moment,” said Lowman. “We need clarity as soon as possible on what the Government intends to do to ensure that convenience stores can keep serving their communities in the new year. Without support on this crucial issue, stores will be facing extremely difficult decisions in the new year.”
The full Autumn Statement document is available here.
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