Autumn Budget: rates boost for retail and shake-up of alcohol duty

By David Shrimpton in Industry News 27th October 2021

Chancellor Rishi Sunak has announced in today’s Budget a new 50% business rates discount for companies in the retail, hospitality, and leisure sectors, lasting for one year.

He said he wanted “to help those businesses hardest hit by the pandemic”.

“Pubs, music venues, cinemas, restaurants, hotels, theatres, gyms any eligible business can claim a discount on their bills of 50%, up to a maximum of £110,000,” he said.

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.

A shake-up in alcohol duty that will see sparkling wine become cheaper was one of the other surprises unveiled by Sunak in today’s budget announcement.

He also moved to support pubs by cutting the duty on draught beer and cider served from containers over 40 litres.

“That’s the biggest cut to cider duty since 1923,” he said. “The biggest cut to fruit ciders in a generation. The biggest cut to beer duty for 50 years.”

He also cancelled the planned rise in fuel duty because, with fuel prices at the highest level in eight years, he was “not prepared to add to the squeeze on families and small businesses”.