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The British Retail Consortium (BRC) has accused the chancellor of selling out retailers and customers in his Autumn Statement delivered yesterday (22 November).
In the budget Hunt froze the business rates multiplier for small businesses but offered nothing to larger ones.
He also increased the National Living Wage to £11.44 and included 21 and 22 year olds in this.
Helen Dickinson, CEO of the BRC, said: “The chancellor has poured fuel on the fire spreading across our high streets with a tax hike on shops and other businesses. His decision to increase the business rates standard multiplier will cost retailers hundreds of millions every year. Rather than introduce the meaningful reforms that were promised in the Government’s 2019 manifesto, the chancellor is now letting the tax spiral out of control, driving up costs just as retailers’ efforts to curb inflation have started to bear fruit.”
This sentiment was echoed by the CEO of Currys Alex Baldock who stated that it was “deeply disappointing” that the chancellor had not addressed business rates.
Baldock added: “Under the current system retailers with stores, which provide millions of high-value jobs, will be hit with an additional £480m bill in April, while online-only businesses remain significantly under-taxed. The rates system is meant to reflect rental values, but with rental values falling it is unjustifiable for business rates to still be going up.
“If the Government is serious about supporting businesses of all sizes, promoting growth and reducing costs for consumers, it must urgently address our outdated and unfair business rates system.”
However, the Confederation of British Industry (CBI) praised Hunt for introducing full expensing permanently, “prioritising ‘game-changing’ interventions”.
Rain Newton-Smith, CBI chief executive, said: “Helping firms to unleash pent-up investment is critical to getting momentum into the economy. Making full expensing permanent will give firms the stability they need to press on with decisions on investment whilst keeping the UK at the top table internationally for investment incentives.
“Moves to speed up planning and grid connectivity should also bolster business confidence to invest in high growth areas like green technologies, renewable energy and advanced manufacturing.”
