2020 Budget Announces
Chancellor of the Exchequer, Rishi Sunak MP, announced today that Business Rates for eligible businesses will be cut completely for the next financial year, and committed to a long called for review of the tax later in 2020.
Following persistent lobbying, the government has announced the increase of “Retail Relief” to 100%, running until 31st March 2021 meaning tens of thousands of small businesses will pay no rates at all.
Referencing the government’s previous commitment to increasing relief to 50%, Rishi Sunak MP said, “Today I can go further, and take the exceptional step, for this coming year, of abolishing (these) business rates altogether.”
Mr Sunak also announced the extension of the relief to some other types of business.
“Museums, art galleries, and theatres; caravan parks and gyms; small hotels and B&Bs; sports clubs, night clubs; club houses, guest houses. They would not benefit from today’s measure – but they could be some of the hardest-hit.
“So, for this year, I have decided to extend the 100% retail discount to them as well.
“That means any eligible retail, leisure or hospitality business with a rateable value below £51,000 will, over the next financial year, pay no business rates whatsoever,” said the chancellor.
The move saves some businesses up to £25k in a tax holiday worth a combined £1bn.