Budget 2021: Chancellor announces hospitality business rates discount and alcohol duty reform - The Caterer
Chancellor Rishi Sunak announced a business rates discount for the hospitality sector this afternoon as well as plans to reform alcohol duty as part of his 2021 Autumn Budget.
Sunak described abolishing business rates as "irresponsible", however, he announced that next year's planned multiplier increase will be cancelled and – most significantly – a year-long 50% business rates discount will be available for the retail, hospitality and leisure sectors. Eligible businesses will be able to claim a discount on their bills of 50% up to a maximum of £110,000.
With the government's consultation on business rates reform due to be published today (27 October), Sunak confirmed plans to introduce more frequent revaluations every three years from 2023, as well as new investment relief to encourage business to adopt green technologies like solar panels, and a business rates improvement relief.
This will mean that from 2023 every business making property improvements, for example a hotel adding extra rooms, will pay no extra business rates for 12 months.
And on top of cancelling a planned increase in duty on spirits like Scotch whiskey, wine, cider and beer – a tax cut worth £3b – from February 2023 the chancellor announced a reform of alcohol duty, a system he described as "outdated, complex and full of historical anomalies" and detailed plans to create a system that is "simpler, fairer and healthier".