Chancellor plans massive Budget tax break to save 5,000 pubs and rescue the high street

PUBS, cafes and small shops could be handed a huge tax break in the upcoming Budget as the Chancellor looks to save Britain’s struggling high streets. John Healey is understood to be drawing up plans to slash business rates for smaller firms, with some companies set to be scrapped from the tax altogether, according to The Telegraph. Treasury officials have been holding secret talks with business groups over the past fortnight to work out how to help town centres blighted by closures. One option being looked at is raising the threshold for small business rates relief, which currently wipes out the tax completely for firms whose premises are valued at less than £12,000 a year for rates purposes. Sign up for the Money newsletter Thank you! The British Beer and Pub Association (BBPA) reckons raising the threshold to £18,000 alone would save 5,000 pubs from paying business rates. Emma McClarkin, chief executive of the BBPA, said increasing the threshold would help “keep people in work” and protect “the backbone of the community”. The Treasury is also considering extending transitional relief, which softens the blow for firms hit by soaring bills following April’s business rates revaluation, with some seeing bills rocket by up to 80%. In a victory for The Sun’s Save Our Sups campaign, Prime Minister Andy Burnham has already announced a 20% cut in business rates for pubs, clubs and live music venues next year. The discount supports almost 32,000 businesses, saving a typical pub about £1,100 a year. But UKHospitality has long been pressing the Government to extend similar support to restaurants, cafés and hotels in the Budget. Most read in Money Kate Nicholls, chairman of the group, said: “We have been talking to the government since January this year about the significant increases faced by hospitality businesses. “We are grateful that the government has looked at this and Andy Burnham acted immediately to give pubs some relief this summer. “We are now working with the government to make sure that restaurants, cafes and hotels receive comparable support on business rate changes at the Budget.” A Treasury spokesman said: “As has always been the case, decisions on tax are a matter for the Chancellor to set out at fiscal events, rather than routinely commenting on rumour, speculation or proposals.” 1 comment1