The UK’s much hated business rates won’t be scrapped, because it would increased borrowing up by £25 billion, said the chancellor.
But the government will bring in tax relief for businesses which adopt green technologies such a solar panels or who want to improve their properties by adding more rooms. So a hotel can add on more bedroom, without their business rates being increased, or a factory can expand.
Businesses in the retail, hospitality and leisure sectors – which have been hardest hit by the pandemic – will get a one-year 50 per cent business rates discount for retail, hospitality, leisure sectors.
Any eligible business in these sectors can claim a discount of up to 50 per cent up to a maximum of £110,000 – a business tax cut worth almost £1.7 billion, he said.
It will apply to pubs, music venues, cinemas, restaurants, hotels, theatres and gyms.
Any eligible business can claim a discount on their bills of 50 per cent, up to a maximum of £110,000.