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