Budget 2017: Pubs raise a glass to £1,000 discount but business rates issue 'kicked down the road'
Published: 18:00, 08 March 2017
Updated: 18:01, 08 March 2017
Pubs were the big winners from the Spring Budget but many firms said the Chancellor ducked the chance to carry out much needed reforms to business rates.
Philip Hammond announced drinking holes with a rateable value of less than £100,000 – equivalent to 90% of the pubs in England – will receive a £1,000 discount on the tax.
The move was welcomed by landlords as a “good move” but many called for changes to the business rates system entirely.
David Savory, who owns the Style & Winch in Maidstone, said: “It’s good news for pubs and an assistance without a doubt but, really, it’s the tip of the iceberg.
“Business rates are a very strange thing. Many of the businesses on this road do not pay any because their rateable value is below £12,000. It’s all very skew-wiff.”
Jonathan Neame, chief executive at pub and beer company Shepherd Neame, welcomed the £1,000 discount and said the Budget shows the Chancellor “is listening to the leisure industry”.
However, he said many pubs are still facing huge rises in their business rates.
He said: “This doesn’t address the large increases which much of the leisure industry will see in coming months.
“The fundamental issue is that pubs currently suffer from a tax regime that while fit for the 20th Century, is not for the 21st Century. A thorough review of rates and excise duty is urgently needed.”
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In addition to the discount for pubs, the Chancellor said no firm losing small business rate relief under changes being introduced in April will see their bill increase next year by more than £50 a month.
He also announced £300 million fund for local councils to offer discretionary relief for hard-hit cases.
“Whilst welcome, in the context of a £25 billion a year tax, these are small, short term measures and the prospect of the consultation suggests more substantive reform, particularly for online retailers, may have been kicked a short distance down the road...” - Keith McAlister, Thomson Snell & Passmore
Yet his commitment to hold a consultation on business rate revaluations was uttered to groans from fellow MPs in the Commons, who wanted to hear about big reforms.
Keith McAlister, partner at law firm Thomson Snell & Passmore, which has offices in Dartford and Tunbridge Wells, said: “As expected, the Chancellor has announced there will be a consultation on business rates.
"While we wait for this there will be some short term help.
“Whilst welcome, in the context of a £25 billion a year tax, these are small, short term measures and the prospect of the consultation suggests more substantive reform, particularly for online retailers, may have been kicked a short distance down the road.”
Mark Quinn, managing director of Canterbury-based housebuilder Quinn Estates, said: “While a lot of businesses will welcome consultation on business rates, what they don’t want is this dragging on with all the added financial uncertainty that will cause.
“There is a need to completely review this antiquated and out of date property tax which is unable to cope with the new economy we now live in.
“The government needs to be doing everything it can to boost enterprise and support business success. Jobs and the future prosperity of Kent depends on it.
“How the measures announced today deliver on that, will be the measure of this Budget’s success.”
There was some support for the Chancellor from Sarah Webster, commercial property partner at Maidstone law firm Brachers.
She said: “Whilst opinion is divided as to whether or not these measures will assist small businesses in the long run, it does show some commitment to try and help those businesses most at risk of losing any rate relief, albeit if it is only a temporary solution.”
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Chris Price