Chancellor Jeremy Hunt says the Government’s priorities are ‘stability, growth and public services and to protect the vulnerable’ as he delivered the Autumn statement.

He announced a £55 billion package of consolidation measures with tax rises and spending cuts in order to stabilise the public finances, reduce debt and combat high inflation and high interest rates and rebuild the economy. The following areas of the Autumn statement will be of interest to members:

Business rates support – hospitality and leisure highlighted for support

A package of targeted support of £13.6 billion over the next five years is intended to help business with rates. HM Treasury published a full Business Rates Factsheet which goes into detail, in particular on support for the hospitality, leisure and retail sectors, it includes the following:

• To support high street properties the government is extending and increasing the Retail, Hospitality and Leisure relief scheme from 50% to 75% for 2023-24, up to £110,000 per business.
• An estimated 230,000 business properties will get a £2.1 billion tax cut next year.
• A small property in the retail, hospitality or leisure sectors eligible for the Supporting Small Business Scheme will not see an increase greater than £150 per year, equivalent to £12.50 per month.

Ratepayers in England will also be able to see the future rateable value for their property and get an estimate of what their business rates bill may be from 1 April 2023 at https://www.gov.uk/find-business-rates.

Energy Bill Relief Scheme review  – more targeted support for businesses

For businesses, the Chancellor mentioned there would be support coming on energy in 2023 but did not clarify the detail.  The Government is currently conducting a review of The Government’s Energy Bill Relief Scheme (EBRS) for businesses with the scheme due to end on 31 March 2023.

The support the EBRS will provide for businesses after this date will be ‘significantly lower, and targeted at those most affected to ensure fiscal sustainability and value for money for the taxpayer’.   The Government review of the Scheme states there will be a ‘very high bar’ for firms to receive continued government support – read more at Terms of Reference: Review of the EBRS. To make a case directly, businesses should email ebrsreview@beis.gov.uk as soon as possible, as results are expected before Christmas.

Taxation and wages – national living wage to increase

• Income tax personal allowance and higher rate thresholds frozen for further two years, until April 2028
• National Insurance and inheritance tax thresholds frozen for further two years, until April 2028
• UK minimum wage for people over 23 to increase from £9.50 to £10.42 an hour from April 2023
• Tax-free allowances for dividend and capital gains tax cut next year and in 2024

No cut in hospitality VAT

Hospitality VAT is to remain at 20% until March 2026 and there was no mention of the planned rise in alcohol duty.