Further to our report on the review of business rates a couple of weeks ago, the chancellor made further noises in this Budget about the future for online retailers. Currently exempt from potentially higher business rates given their lack of bricks and mortar operations, some have called for an equivalent tax to be levied on the likes of Amazon (US:AMZ) and other online pure-plays to level the playing field. Mr Hammond confirmed consideration of this will form part of future reforms.
There was some good news for more traditional companies, however. Every British pub with a rateable value of less than £100,000 will receive a discount of £1,000 in 2017, a move that affects 90 per cent of all establishments according to Mr Hammond. What’s more, any small businesses set to lose their rate relief once they tip over the new threshold will see increased costs capped at £50 a month. Finally, Mr Hammond will set up a £300m fund for local councils to offer discretionary relief to the worst-hit companies.
