Autumn Budget 2021: Key Highlights for Butchers
The business rates multiplier will be frozen for 2022/23 at 49.9p for properties under £51,000 RV and 51.2p for those above, meaning bills are 3% lower than projected.
From 2023, a new business rates relief will incentivise property improvements by delaying consequent increases in bills for 12 months.
Transitional relief has been extended for one year, restricting bill increases to 15% for small properties (up to £20,000 RV) and 25% for medium properties (up to £100,000 RV), subject to subsidy control limits.
The Government has published a consultation on introducing a UK-wide Online Sales Tax, where revenue would be used to reduce business rates for bricks and mortar stores. The final report of the business rates review is available here.
Chancellor has this to say “Pubs, music venues, cinemas, restaurants, hotels, theatres, gyms any eligible business can claim a discount on their bills of 50%, up to a maximum of £110,000″.
Alongside the Small Business Rates Relief, Sunak claimed his measures would mean more than 90% of retail, hospitality and leisure businesses will see a discount of at least 50%.
National Living Wage
The National Living Wage (NLW) rate will be £9.50 from 1st April 2022. This is a 6.6% increase on the £8.91 rate for 2020/21. The Government has accepted all recommendations from the Low Pay Commission on revisions to the National Minimum Wage rates.
The confirmed rates to apply are as follows:
|Wage Rate||Current Rate||Rate to apply from 1st April 2022||% Increase|
|National Living Wage (workers aged 23 and over)||£8.91||£9.50||6.6|
|National Minimum Wage (workers aged 21 to 22)||£8.36||£9.18||9.8|
|Youth Development Rate (workers aged 18 to 20)||£6.56||£6.83||4.1|
|16 – 17 Year Old Rate||£4.62||£4.81||4.1|
The LPC’s full report, setting out the evidence used in reaching these recommendations, will be published later this year. A summary of findings is available here.
- Fuel duty frozen in 2022-23, for the twelfth consecutive year.
- The £1m Annual Investment Allowance, scheduled to end this December, has been extended to 31st March 2023 to support new investments and simplify tax requirements.
- A new recruitment service will be established by 2024/25 to support new apprenticeships and a consultation will be launched on giving employers more choice about how apprenticeship training is delivered.
- The Recovery Loan Scheme has been extended until 30th June 2022. From 1st January the scheme, which provides lenders with a guarantee on eligible loans, will be restricted to SMEs. It will provide a maximum finance amount available of £2m and guarantee coverage to lenders will be reduced to 70%.
- Government will also address the driver shortages by introducing temporary visas. It also announced new funding to improve lorry parking facilities.
NCB Technical Manager, Richard Stevenson had this to say:
“This is potentially a great budget for growth, but we will have to wait and see how things go in the post Brexit/COVID climate. We are disappointed that there was no major overhaul of business rates but the cuts and tweaks favouring hospitality and small business sectors are a very welcome boost.”