Will The Budget Give ‘The High Street’ A Boost?

Business rates for small retailers will be cut by one third as part of the government’s drive to revitalise the UK’s high street, which is also very timely during this uncertain period of the Brexit negotiations!

The aim is to give some much-needed relief to retailers threatened by high rates, and who have felt the additional squeeze from the rapid rise of online shopping, which has led to many high street brands to close or re-structure.

The cut in business rates will mean an annual saving of up to 8,000 for up to 90% of all independent shops, pubs, restaurants and cafes whilst most retail business with a rateable value of less than £51,000 will see their business rates cut by 33% for two years from April 2019.

The Association of Convenience Stores (ACS) has welcomed the announcement in the cut of business rates.

Extending small business rate relief would be a huge boost to small shop owners across the country and we’re delighted the chancellor has listed to their concerns and taken decisive action to reduce the burden of business rates following big increases in recent years. ACS chief executive James Lowman has said

The targeted relief for small businesses was accompanied by a spending pledge of £675 million for a sustainable transformation of British high streets. Some of this money will be spent on a High Streets Task Force to support local leadership, and fund the restoration of historic buildings on the UK’s high streets.

The Introduction of the ‘Amazon tax’

Mr Hammond made considerable use of his announcement to reveal a new digital services tax. The 2% tax on revenue will be derived from UK users for only certain business activities, and will only apply to groups that generate global revenues over £500 million a year. The idea is to capture revenue generated by large tech companies such as Google and Amazon, which pay relatively little tax in the UK.

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