Business rates boost and tax promise turn-around

Chancellor Philip Hammond has presented the 2017 Spring Budget, including support for business rates and a tax hike for the self-employed.

Hammond has announced the expected package to support businesses affected by the business rates relief revaluation, with £435 million plans put in place to ensure that no small business coming out of small business rates relief will pay more than £600 more in business rates this year than they did in 2016-17.

Funding for local authorities will allow them to provide £300 million of discretionary relief to provide help to businesses most affected by the revaluation, while pubs with a rateable value up to £100,000, calculated at 90 per cent of pubs, will be able to claim a £1,000 business rates discount for one year from April. Communities Secretary Sajid Javid is expected to reveal further a funding formula ‘in due course’.

Mike Cherry, national chairman at the Federation of Small Businesses (FSB), said: “FSB welcomes the fact that the Chancellor has listened to the small business-led campaign on business rates. The £435 million of new money is a direct and much-needed response to those facing astronomical hikes in their business rates. This immediate relief is vital in the short-term, and action on more frequent revaluations will also help. But this tax remains out-of-date, so today we call for a cross-party Commission to create a simple, fair tax system for a modern economy.”

However, millions of self-employed people face an unwelcome tax rise of two per cent in National Insurance Contributions (NICs) as Hammond addressed the difference in contributions between those who are self-employed and those in employment, marking the difference as ‘no longer justified’.

Class 4 NICs will increase by one per cent in April 2018 and by one per cent in April 2019, costing a self-employed worker an average of 60p more a week in tax. The money generated would ‘support our public services and improve the fairness of the tax system’.

Controversially, the Conservative election manifesto in 2015 stated that under a Conservative government there would be ‘no increases in VAT, Income Tax or National Insurance’.

Event Diary

It is no mystery that there is a huge task at hand to solve the growing problems of waste, inefficient resources, and the disposal of hazardous materials as our communities develop.

You are invited to this unique annual exhibition that brings together all the disciplines from the emergency services sector who are involved in prevention, response and recovery. 

Supplier Profiles