3 minute read
Autumn Budget
by 55 North
COVER STORY
Money, money, money
Chancellor addresses wages, business rates and alcohol duty.
Chancellor Rishi Sunak confirmed in today’s Autumn Budget that the National Living Wage will rise to £9.50 from 1 April 2022, representing an increase of 59 pence or 6.6%.
Bryan Sanderson, Low Pay Commission Chair, said: “The pandemic has been an exceptionally difficulty period for businessesand workers alike, but the labour market has recovered strongly and the economy is expected to continue to grow over the next year.”
However, the NFRN has warned the move will threaten jobs in the sector. National President, Narinder Randhawa, said: “Independent retailers have already been hit hard by the Covid pandemic, with many having to reduce staff levels and hours and take on more of the work themselves. This increase to the national minimum wage will only make matters worse.
“At a time when small businesses need help and support more than ever, this move by the government feels like a kick in the teeth for those that are already struggling to survive.”
Sunak also pledged to make business rates fairer, with more frequent revaluations from 2023. He said the government will introduce tax relief for businesses who adopt green technologies,such as solar panels, and for those who want to improve their properties.
In addition, businesses in the retail, hospitality and leisure sectors – which have been hardest hit by the pandemic – will get a new 50% business rates discount, lasting for one year. Any eligible business can claim a discount on their bills of 50%, up to a maximum of £110,000.
ACS Chief Executive, James Lowman, commented: “The impact of the pandemic has been uneven across the convenience sector, with many stores, especially those in city centres and near transport hubs, struggling to keep going throughout the restrictions that have been in place over the last 18 months. As we look toward recovery and rebuilding for the future, it’s essential that the Chancellor gives businesses the right tools and certainty to be able to invest in the long term.”
The Chancellor said the UK will carry out the “most radical simplification of alcohol duty” for more than 100 years. He said there will be just six duty rates on alcohol, which will mean that some stronger spirits and wines will become more expensive, but weaker alcohols like beer and rosé will become cheaper. Duty is also being cut on fruit ciders to bring it in line with apple ciders, he said.
In addition, he revealed that the price of a pint will fall by 3p and the planned increase of duty on spirits will be cancelled.
In response, Wine Drinkers UK said: “We welcome the cancellation of the planned increased in all alcohol duty and the government’s long overdue decision to abandon the ‘super-tax’ on sparkling wines.
“On the proposed wider reform of the alcohol duty we await clarification from HM Treasury in the coming days. We hope this will put a stop to the historic unfairness of favouring one drink over another.”
Sunak said the Budget will fund the government’s ambition to have 20,000 new police officers and provides an extra £2.2bn for courts and rehabilitation services. It will also spend £3.8bn for the “biggest prison-building programme in a generation”.
The Budget also includes an extra £435m for more CCTV and streetlights.
The Chancellor said the planned rise in fuel duty will be cancelled because, with fuel prices at the highest level in eight years, he is “not prepared to add to the squeeze on families and small businesses”.
