Suzy Harris Milnes, tax partner at BHP in Sheffield said: “Focusing on the country stepping forward, and recovering, from Covid, it appeared to be a very positive budget. I believe businesses will be happy about the cuts to business rates, the extension to the annual investment allowance and the R&D changes. However, it remains to be seen whether businesses will be winners because of the increase in the National Living Wage and the previously announced increase in National Insurance.
“I’m disappointed that the Chancellor hasn’t delayed the change to basis period for unincorporated businesses, as this will mean the affected businesses could face tax on profits earlier than they would ordinarily have paid, an additional challenge for businesses as they emerge from the pandemic.”
Following a review, the government will reduce the burden of business rates in England by over £7 billion over the next five years, and make the system fairer, more responsive and more supportive of investment.
A temporary 50% rates relief for retail, hospitality and leisure properties was announced alongside a freeze to the business rates multiplier in 2022-23 and new business rates reliefs to support investment in property improvements and investments in plant to support the decarbonisation of buildings.
Zoe Roberts, tax partner at BHP said: “Business Rates reform has been long overdue and so any simplification and additional reliefs will be welcomed by businesses”
