Independent jewellers are set to enjoy some financial respite as business rates will be suspended for tens of thousands of England’s retail, leisure and hospitality firms in the next financial year.
Companies with a rateable value of less than £51,000 will be eligible for a one-year tax holiday, Rishi Sunak revealed during his first Budget to the House of Commons.
It is part of a package of what the government describes as “extraordinary” measures to support the UK economy in the face of disruption from the coronavirus outbreak.
“That is a tax cut worth over £1bn, saving each business up to £25,000,” Sunak remarked.
“Our manifesto promised that for shops, cinemas, restaurants, and music venues with a rateable value of less than £51,000 we would increase their business rates retail discount to 50%. Today I can go further, and take the exceptional step, for this coming year, of abolishing their business rates altogether.”
Retailers eligible for small business rates relief may also be eligible for a £3000 cash grant – which equates to a £2 billion injection for 700,000 small businesses.
The Chancellor said the business rates system as a whole would be reviewed, with the conclusions published in the autumn.