The government has today announced that the conclusion of HM Treasury’s Fundamental Review of Business Rates has been delayed to the Autumn.
The delay hopefully is to fully develop a fair and cohesive solution to an issue that has been a rod on the back of all too many hospitality businesses.
It is also and perhaps optimistically a signal that in the absence of a full review, Sunak will follow the example set by SNP Finance Secretary, Kate Forbes.
SNP Finance Secretary Kate Forbes MSPIn a Scottish budget update at the Holyrood parliament building earlier this week, Forbes announced hospitality businesses in Scotland are to have their rates waived for a further year.
There was however a caveat from the Finance Secretary: “I can now deliver on that promise, providing the UK Budget in March delivers the funding we require.”
Clearly Forbes like the rest of us will have to wait and see.
UKHospitality Chief Executive Kate Nicholls OBEReacting to the news of the delayed rates review, UKHospitality Chief Executive Kate Nicholls said: “The business rates system as it relates to hospitality has been broken for some time. It is an antiquated system of tax that bears almost no relation to the realities of business in the 21st Century. It needs addressing, so a delay in the review is obviously a disappointment.
“If it must be delayed, then it is absolutely vital that the Government uses the extra time to ensure it gets this right. After the misery of last year, a properly functioning, equitable rates system is now more critical than ever. In the meantime, there is now no reason why the business rates holiday should not be extended for another year.”
Nicholls then with a rallying cry added: “Extend this support, along with the VAT cut, at the Budget, then deliver a whole new rates system that no longer unfairly penalises our sector.”
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Hospitality & Catering News: UKHospitality reacts to delay in business rates review. – 19 February 2021 – UKHospitality reacts to delay in business rates review.
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