U.K.’s Hammond to cut business rates to help ailing high street

By: |
Published: October 27, 2018 10:09:35 AM

The government is set to give a tax cut to retailers as part of efforts to save the U.K.’s struggling high streets, which have been hit by the growth of online retail.

A new business rates relief for almost half a million shops and pubs will reduce their bill by a third, Philip Hammond, U.K. Chancellor of the Exchequer, will announce in his budget speech Monday. (IE)

The government is set to give a tax cut to retailers as part of efforts to save the U.K.’s struggling high streets, which have been hit by the growth of online retail.

A new business rates relief for almost half a million shops and pubs will reduce their bill by a third, Philip Hammond, U.K. Chancellor of the Exchequer, will announce in his budget speech Monday.

“Business rates are a heavy burden that throttle all firms with steep bills regardless of how well they’re doing or the economy is faring,” said Hannah Essex, co-executive director of policy and campaigns at the British Chamber of Commerce, one of four business lobby groups calling for a change to business rates in this year’s budget.

The tax break will cover about 90 percent of retailers. It also means the Chancellor will likely scrap an automatic inflation-linked rise of business rates for the next two years, Essex said.

The Treasury said the tax changes would cost 900 million pounds ($1.2 billion). In addition, it will start a 650 million pound New Future High Streets fund to boost infrastructure and redevelop underused properties and will relax some planning rules.

Do you know What is Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget, Customs Duty? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Next Stories
1India needs to push its people to adopt disruptive ways of doing business, says DST secretary Ashutosh Sharma
2Chilean delegation seeks joint collaboration with India in agriculture sector
3PM Narendra Modi may announce measures to boost MSME sector on November 2