The freezing of the small business rates multiplier for another year coupled with the extension of the 75% discount for occupied retail, leisure and hospitality premises for 2024/25 will save the average shop £11,728, restaurant £16,507, pub £12,869 and café £6,072 in business rates next April according to the commercial real estate intelligence firm Altus Group.
The chancellor said the £4.3b tax cut recognises “the role of pubs and high street shops in our communities”. Hunt also froze the small business multiplier for a further year, however the standard business multiplier will increase by 6.4%.
Altus say that the savings will be:
Average Restaurant Premises
- Average Restaurant Premises Rateable Value – £40,489
- 2023/24 UBR 49.9p
- Liabilities – £20,204.01
- 75% Discount – £15,153.01
- Average 2023/24 Restaurant Business Rates Bill – £5,051 (subject to business cap)
Average Restaurant Premises Rateable Value – £40,489
- 2023/24 UBR 49.9p
- Liabilities – £20,204.01
- 6.7% Inflationary Rise for 2024/25 – £1,353.67
- Average 2024/25 Restaurant Business Rates Bill – £21,557.68
Extending the discount and freezing small business multiplier saving next April – – £16,506.68
Average Pub Premises
Average Pub Premises Rateable Value – £31,567
- 2023/24 UBR 49.9p
- Liabilities – £15,751.93
- 75% Discount – £11,813.95
- Average 2023/24 Pub Business Rates Bill – £3,937.98 (subject to business cap)
Average Pub Premises Rateable Value – £31,567
- 2023/24 UBR 49.9p
- Liabilities – £15,751.93
- 6.7% Inflationary Rise for 2024/25 – £1,055.38
- Average 2024/25 Pub Business Rates Bill – £16,807.31
Extending the discount and freezing small business multiplier saving next April – – £12,868.66
Average Café Premises
- Average Café Premises Rateable Value – £14,894
- 2023/24 UBR 49.9p
- Liabilities – £7,432.11
- 75% Discount – £5,574.08
- Average 2023/24 Café Business Rates Bill – £1,858.03 (subject to business cap)
Average Café Premises Rateable Value – £14,894
- 2023/24 UBR 49.9p
- Liabilities – £7,432.11
- 6.7% Inflationary Rise for 2024/25 – £497.95
- Average 2024/25 Café Business Rates Bill – £7,930.06
Extending the discount and freezing small business multiplier saving next April – £6,072.03
CAMRA Chairman Nik Antona said: “Extending the 75% discount on business rates bills for pubs in England for another year beyond next April is very much welcome – and much needed for pubs facing rising prices and the impact of the cost-of-living crisis.
“The Chancellor admitted that temporary measures like this couldn’t go on forever, so it is vital that the Government urgently reforms the grossly unfair business rates system which penalises pubs and puts their future at risk.
“CAMRA is calling on the Scottish and Welsh Governments to commit, now, to offering similar help for pubs with the burden of business rates. We’d also like to see the UK Government find a way to help with business rates for the beer and pub sector in Northern Ireland if there continues to be no Executive ministers in post to do so.
“Freezing all alcohol duty until August 2024 is certainly to be welcomed. However, this is a missed opportunity to give targeted help to protect the nation’s pubs, social clubs and taprooms by cutting tax on draught beer and cider served in pubs instead of an across-the-board freeze in all alcohol duty.
“Reducing the tax burden specifically on pints in pubs must be extended in the future to keep pub-going affordable and to help keep pubs open and at the heart of both community life and local economies by giving them a fighting chance of competing against cheap supermarket alcohol.”
UKHospitality Chief Executive Kate Nicholls said: “The Chancellor has brought forward a significant package of business rates measures that will help hospitality businesses across the country. UKHospitality led the calls for Government to extend relief and take action on the multiplier and I’m delighted the Chancellor has acted on our asks.”
“The decision to freeze the small business multiplier will help those most vulnerable keep the lights on. However, the standard multiplier rising by 6.4% will see businesses representing almost two-thirds of the sector’s trade still facing a £150m rates hike. This will only put more pressure on consumer prices and inflation, at a time when businesses are still grappling with high costs of energy, food, drink and wages.”
“We’re pleased that the Chancellor has also acted on our proposal and frozen alcohol duty until August next year. This is now one less cost venues have to worry about. With duty frozen, this should substantially constrain any cost increases passed on by drinks producers.”
“Reforms to the planning system to drive quicker planning approvals will remove a significant barrier to business investment. This type of reform to reward the best performing local planning authorities is exactly the type of change we have been suggesting to drive growth in hospitality.”
“While it’s disappointing that employer contributions to National Insurance have not also been cut, the reduction in National Insurance for employees will put more money in people’s pockets and provide a boost to hospitality in the New Year, often a challenging time for the sector.”
BII CEO, Steve Alton said: “We welcome the news that Business Rates relief for the Retail, Hospitality and Leisure sectors will be continued at 75% for 24/25, in line with our consistent calls on Government for ongoing support in this area. We also welcome the freeze on alcohol duty, not putting further pressure on top of embedded cost increases that our sector has been facing over the last few years.”
“Today’s statement from the Chancellor offers some much-needed support for many of our members, all of whom are facing the most challenging and critical times for their businesses. However, as small businesses at the heart of their communities, many run by independent operators, the rise in the national living wage to £11.44 per hour will hugely impact the profitability of their venues. Whilst we welcome measures that protect workers, there must be recognition of the impact this mandated increase will have on our small pub businesses.”
“We would like to thank all of our members who took the time to write to their MPs as part of our #MyPub campaign launched in the summer, calling for support from the Chancellor. Your voices have been invaluable in supporting our engagement with Government, making the case for this vital further support.”
