Business leaders are praising Chancellor Jeremy Hunt's Autumn Budget after he announced a range of support packages in Parliament.
The financial update, delivered today on 17 November, targeted business rates and a permanent increase to the annual investment allowance (AIA).
As of April 2023, business rates relief for retail, hospitality and leisure will increase from 50% to 75%, equating to £110,000 per business over 2023/24.
Small businesses will also benefit from a new ‘supporting small business scheme', which will cap business rate bills at £600 per year for smaller businesses.
Although it wasn't mentioned during the Chancellor's speech, the AIA will remain "permanently" at £1 million rather than being reduced to £200,000 after 31 March 2023.
As of 1 April 2023, the national living wage will be increased by 9.7%, meaning anyone over the age of 23 will be paid a minimum of £10.42 an hour, totalling an extra £150 per month in wages, according to Bryan Sanderson, chairman of the Low Pay Commission.
However, the Government will not be going ahead with an online sales tax despite months of consultation, which would have seen online retailers tax a similar amount to what bricks and mortar businesses pay in business rates.
Helen Dickinson, chief executive of the British Retail Consortium, said:
"This Autumn Statement supports commitment by reducing upwards pressure on prices in the short term and helping retailers protect jobs, keep shops open, and protect the vibrancy of local communities."
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