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Blog // 09/03/2017

Retail: Spring Budget 2017 Response

Spring budget 2017

Following the Chancellor’s Spring Budget 2017 update, Menzies Retail sector team have reviewed the impact of Philip Hammond’s announcement upon the UK business services community.

Comments provided by Menzies Partner Andrew Mosby and Martin Hamilton.

Spring Budget 2017: BUSINESS RATES RELIEF EXIT SOFTENED FOR HIGH STREET RETAILERS

Andrew Mosby - Menzies AccountantWhilst larger retailers will be frustrated by the Budget, there was some better news for the local high street shop. For those businesses no longer benefiting from the 100% Business Rate Relief a new cap of £600 per year will be initially introduced. In addition, local authorities will be given a combined £300 million pot to subsidise further, this will provide discretion locally to help the traditional retailer compete in an increasingly challenging and diverse sector.

Spring Budget 2017: NO NEWS, IS GREAT NEWS FOR ETAILERS

Perhaps conscious of BREXIT and the wider global impact, the Chancellor chose to consult (effectively deferring any decisions) on changes to the way a future UK digital economy may be taxed. Whilst understandable, the delay will put increased pressures on traditional retailers, to scale back on the high street and focus more online – with reduced overhead costs, business rates and job costs.

Get more input on the Spring Budget 2017 implications for the Retail & wholesale sector by speaking to our sector team.

Find out more about the Menzies Retail & wholesale business services.


Menzies #BrighterThinking Spring Budget 2017 Response

Download our Spring Budget 2017 commentary in full.

Download our 2017/2018 Tax Rate Card.

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