Spring Budget 2017 – Chancellor pledges business rates relief including £50 monthly cap and £1k discount for pubs
The Chancellor unveiled three measures to help those businesses most affected by the tax
THE Chancellor has pledged to ease the burden on those "hardest hit" by business rate tax.
He confirmed that no business losing small business rate relief will see their bill increase next year by more than £50 a month.
Hammond also confirmed that 90 per cent of pubs will get a £1,000 discount on their business rate bill.
More than 15,000 English boozers face an average rate rise of 19 per cent under the first re-evaluation of the hated levy in seven years.
Pub bosses and breweries have pleaded with the Chancellor to intervene, saying the crippling hikes would wipe many from high streets as well as pushing up the price of a pint by 5p in others.
Listening to the pleas, Mr Hammond will slash 90 per cent of all pubs’ bills by £1,000 by introducing a permanent annual discount for all but the very largest.
Lastly, a £300million fund will be set up for local councils to go towards discretionary relief for hard-hit businesses.
In today's Budget, the Chancellor said he couldn't scrap business rates altogether as the tax brings in £25billion a year.
As part of the plans councils will be allotted cash to grant to shops, pubs and cafes in their area who face increases in rates this April.
The threshold for "tapered relief" is also set to rise – to free other outlets from paying altogether.
One insider said: “There’s a limit to what the Treasury can do at this late stage but they believe this will be a winner.”
Ministers are also considering ditching plans to ban appeals if the rateable value provided by the Valuation Office is within a 15 per cent “margin of error”.
The proposal has incensed business groups who claim the move is illegal.
Business rates are due to rocket for 400,000 small shops, pubs and clubs this April after the first property revaluation for seven years. The biggest losers are in London and the South East.
Communities Secretary Sajid Javid has come under intense pressure to act after going on holiday the week the row erupted last month.
Small business chiefs are furious that big businesses such as Heathrow Airport and Amazon face rate bill cuts.
Sajid Javid met with leading rating experts CVS on Wednesday.