Rachel Reeves has been accused of botching business rates reform as pubs and small shops face higher bills while big supermarkets are set to pay less.
The Chancellor had promised to pay for a reduction in bills for smaller firms by hiking taxes on larger properties to ‘level the playing field between the high street and online giants’.
But it emerged bills will still rise for many small businesses, while the largest supermarkets will see a near-£43million cut, to just over £1.2billion next year.
While this will help keep food prices down, the contrast was branded ‘somewhat perverse’ by Andrew Goodacre, chief executive of the British Independent Retailers Association.
‘The large guys are going to pay less and the small guys are going to pay more, it’s ridiculous. This makes a complete mockery of the Government’s stated intentions,’ he said.
Emma McClarkin, chief executive of the British Beer and Pub Association, said: ‘Bills for most will go up overall and, therefore, it will become harder for pubs to stay open, which will risk jobs, the hearts of communities, and drive growth.’
Backtrack: Chancellor Rachel Reeves (pictured) had promised to pay for a reduction in bills for smaller firms by hiking taxes on larger properties to ‘level the playing field’
Firms facing a fresh hike to the minimum wage were pinning their hopes on help with business rates.
But small businesses – those with commercial properties with rateable values under £500,000 – will see just a 5p cut to their ‘multiplier’ that calculates the bill, a far cry from the 20p that had been called for.
Alex Reilley, the chairman of Loungers, said: ‘The Government is systematically destroying hospitality and retail businesses, decimating our high streets and town centres.’
Tina McKenzie, at the Federation of Small Businesses, said: ‘Today’s business rates measures will not help small firms.’
Covid-era relief of 40 per cent will also be axed for small businesses next April. But a new multiplier for large businesses – those with a rateable value over £500,000 – was set at 50.8p. That is below the current 55.5p.
This will result in 2,040 big supermarkets – primarily Tesco, Asda, Sainsbury’s and Morrisons – enjoying a £42.9million cut in their combined bills, according to global tax firm Ryan. One big retailer even called it ‘the best thing since sliced bread’.
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