Chancellor of the Exchequer Philip Hammond has confirmed that the Government will ease business rates for smaller retailers by 33%.
During the Autumn Budget he also announced that a digital services tax will be introduced for companies with at least £500m in global revenue.
Reduced Rates
The Government’s plan to reduce rates over the next two years is expected to save businesses £900m. This reduction will include retail businesses with a rateable value of £51,000 or less. In his Budget speech the Chancellor said:
“I want to help retail businesses now. So for the next two years, up to that Revaluation, for all retailers in England with a rateable value below £51,000, I will cut their business rates bill by one third.
“That’s an annual saving of up to £8,000 for up to 90% of all independent shops, pubs, restaurants and cafes.”
New Digital Services Tax
Mr Hammond also announced that the Government is to implement a digital services tax that will only be paid by businesses with a global revenue of more than £500m. The new tax will most likely affect online brands such as Amazon and Facebook, which will in turn benefit their smaller high street competitors.
During his Autumn Budget announcement, Mr Hammond noted that the Government:
“Will consult on the detail to make sure we get it right, and to ensure that the UK continues to be the best place in the world to start and scale up a tech business.”
European Investment Fund
Mr Hammond also reassured British entrepreneurs that the Government will provide an additional £200m of funding to the British Business Bank in place of the European Investment Fund.
On top of this he said that the Government will “back another 10,000 entrepreneurs by extending Start-Up Loans funding to 2021”.
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