Spring Budget 2021

Business rates holiday will now end in June

By Nikkie Thatcher

- Last updated on GMT

Future plan: the business rates holiday has been extended until June when it will be tapered (image: Getty/Zerbor)
Future plan: the business rates holiday has been extended until June when it will be tapered (image: Getty/Zerbor)

Related tags: Business rates, Finance, Property, Government

Pubs will not have to pay any business rates until June this year – an extension of three months, Chancellor Rishi Sunak has announced in the spring Budget.

After June, rates will not go back up to the standard rate but will be reduced by about 67% up to £2m for closed businesses with a lower cap for those who have been able to open, for nine months.

Sunak said: “This year we will continue with the holiday for first three months of the year, to the end of June."

Treasury signalling

He added: "For the remaining nine months, business rates will be discounted by two thirds up to a value of £2m for closed businesses with a lower cap for those who have been able to stay open."

Councils were urged not to issue business rates bills ahead of the new financial year​ on 1 April, until after the Budget.

This suggested the Chancellor would be announcing further support for commercial properties, according to real estate advisor Altus Group.

Helpful but challenging

Usually, as billing authorities, councils would start issuing and sending out yearly business rates bills this month (February) ahead of the new financial year on 1 April.

On the announcement of the extension, UKHospitality chief executive Kate Nicholls tweeted: "Business rates 100% holiday extended to June then two thirds for remainder of the financial year is helpful but many in hospitality will not be open before 21 June and so this remains a challenge unless Government helps with route map out of rent debt.

"Overall, a supportive package for hospitality recovery – VAT, business rates relief, grants and furlough all extended and we hope this will be kept under review as we reopen and recover."

She added: “It is great this fixed cost has been eliminated during the recovery and is heavily reduced for the rest of the financial year. It will give some much-needed breathing room for businesses as they prepare to reopen, though the cap will impact some larger businesses.

"Not all businesses will be able to reopen swiftly, it will take them time to get up and running. They will be burning through meagre cash reserves as they do so, so this extra flexibility is going to crucial in ensuring as many as possible stay alive.

“The forthcoming revamp of the rates system then has to deliver a wholly new system of business tax that no longer unfairly penalises our sector."

Related topics: Property law

Related news

Show more

Spotlight

Follow us

Pub Trade Guides

View more

The MA Lock In Podcast

Join us for a Lock In

FREE EMAIL NEWSLETTER

Subscribe to The Morning Advertiser

The definitive voice for the pub trade

Get the latest news, analysis and insights from the uk pub sector straight to your inbox!