Autumn Statement 2013: Pub industry to benefit from business rate cut
Last Thursday George Osborne's Autumn Statement revealed positive steps forward for the pub industry as the Chancellor announced a string of measures to ease business rate burden on pubs.
Osborne said: "Business rates impose a heavy burden on businesses of all sizes", and pledged to back the small businesses which "epitomise the hardworking values this Government supports".
The proposals announced in last week's statement will provide a vital lifeline for struggling licensees and will help keep pubs open.
Summary of Proposals:
- Increases in business rates in England capped at 2% from next April
- Plans to encourage small businesses on to the High Street by cutting £1,000 from their rates bills
- Traders moving into a vacant property will be entitled to a 50% discount on rates, under a "re-occupation" relief scheme
- All firms will be entitled to pay their rates in 12 monthly instalments.
- Small Business Rate Relief to be extended until March 2015 – extending the relief for an additional year.
Mike Benner, CAMRA's Chief Executive has welcomed the Chancellor's decision to cut business rate bills for the majority of pubs by £1,000.
Mr Benner commented:
"CAMRA welcomes the Chancellor's decision to cut business rate bills for the majority of pubs by £1,000. This is in addition to an extension of the current small business rate relief provisions for a further year. The Chancellor's £1,000 windfall offers a vital lifeline for struggling licensees and will help keep pubs open.
"All but the largest community pubs will benefit from this £1,000 reduction in business rates and around a quarter will additionally gain from the retention of the current small business rate relief for another year. These decisions are key in helping secure the future of pubs and reverse a decade of decline which has seen more than 10,000 pubs close.
"Business rates are a growing burden on pubs and can account for around 30 pence per pub pint sold".
CAMRA hopes the announcement will help our key campaign to "Stop Tax Killing Beer and Pubs", following the historic beer duty cut earlier this year.
You can view George Osborne's Autumn Statement in full here