// The government introduces a transitional business rates relief scheme as part of the autumn budget
// Chancellor Jeremy Hunt confirmed the next revaluation of rates will go ahead in April 2023
The government’s autumn budget has unveiled a number of initiatives to help support retailers.
Chancellor Jeremy Hunt introduced a transitional business rates relief scheme, a freeze on multipliers and increased support packages.
However, the next revaluation of rates will go ahead in April 2023, which Hunt warned could result in increasing costs due to inflation.
To alleviate concerns, the chancellor revealed support packages to help retail, hospitality and leisure businesses £13.6 billion over the next five years as they transition to their new bills.
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Hunt said business rates multipliers would be frozen from 2023/24 at 49.9p and 51.2p and also unveiled a transitional relief scheme, which will cap increases caused by the increase in rateable value at the next valuation.
The “upward caps” will be 5%, 15% and 30% respectively for small, medium, and large properties in 2023/24. They will be applied before any other reliefs or supplements.
KPMG UK head of retail Paul Martin said: “Whilst the prospect of support for retail businesses coming next year will be welcomed, the UK is in recession now and many retailers will be focussed on surviving the next few months as consumer confidence and spending declines, and costs continue to rise.
“The question remains, will the support offered from April next year be too little too late for some struggling retailers?”
Hunt also implemented an increase in support for eligible businesses up to 75% on rates up to £110,000 per business and a business rates cap for smaller businesses.
The government said it would not be introducing a specific online sales tax. This decision “reflects concerns raised about an online sales tax’s complexity and the risk of creating unintended distortion or unfair outcomes between different business models”.
Secret Sales CEO Chris Griffin said: “Despite the budget announcement today, the cost-of-living crisis remains a reality for many and consumer confidence is hanging on by a thread.
“Like never before political uncertainty is impacting consumer shopping habits, as we saw a drop in conversion rates off the back of Hunt’s previous budget plans and then a subsequent uptick in sales conversions following Truss’ resignation.”
Griffin said it was important that consumers feel supported int he lead up to Christmas.
“Shoppers are hitting fight or flight mode and as a result over half (58%) are planning to shop more at discount homeware and fashion brands this year. A trend that we’ve seen at Secret Sales, with a 70% increase in sales like-for-like compared to last year, and one that we expect to continue.”
