Although the announcement will offer some relief, it may not go far enough for all industry groups.
The British Beer & Pub Association (BBPA), and the Association for Licensed Multiple Retailers (ALMR) had both intensified calls for business rate relief for pubs in the run up to the Budget.
During his speech to parliament Hammond said business rates bring in £25bn a year, so despite not being able to abolish it completely, he would “as promised” address concerns.
“Recognising the valuable role of local pubs in the community, there will be a £1,000 discount on business rates for those with a rateable value of less than £100,000”, said Hammond.
Hammond claimed 90% of pubs would qualify for this.
ALMR chief executive Kate Nicholls said the Government’s acknowledgement of the work being carried out by the UK’s pubs was "very encouraging".
“Sector-specific relief will help those businesses hardest hit by the revaluation,” she said.
“This much-needed Government support will save the sector more than £24m and will help safeguard investments and jobs.
“We are pleased to see the Government acknowledge the issue and act positively to support a crucial growth champion and a sector with turnover of £60bn employing more than 1.5m people.”
“The ALMR has been actively campaigning non-stop since September and helped coordinate a campaign as the voice of the sector at key meetings with Ministers and MPs.
She continued: “The next step is for the Government to instigate the long term, root and branch reform that is needed for pubs and bars and the ALMR is keen to work closely with them to achieve this.”
No alcohol duty change
The Chancellor confirmed that he will make no change to previously planned upratings of duties on alcohol. This means alcohol duty will now go up at the same rate as inflation, resulting in an increase in beer duty of 2p a pint.
Sugar levy confirmed
There will be a levy of 18p and 24p per litre for the main and higher bands of sugary drinks respectively.
“Producers are already reformulating sugar out of their drinks, which means a lower revenue forecast for this tax,” the Chancellor said.