Tax Relief

Retailers, pubs and eating places get tax breaks from the Welsh authorities – however chains are lacking out on massive help

Pandemic hit shops, restaurants and pubs in Wales will get discounts next year – but big chains will miss out on big support.

Retail, leisure and hospitality businesses have prices cut to zero in 2021/22, and there have been cliff fears if prices normalize again from April onwards.

This autumn, Chancellor Rishi Sunak announced a 50% discount for these sectors for the next business year in England.

It has now been confirmed in the Welsh government budget that companies in Wales will receive the same discount for 2022/23.

The £ 116 million financing package combined with existing permanent assistance programs will ensure over 85,000 properties are supported.

However, the program is capped at £ 110,000 per business (rather than per location) across Wales, which means limited support to chain stores and restaurants. The same limit applies across the border in England.

Continue reading
Continue reading

The Welsh government said the funding is £ 20 million in addition to follow-up funds received from the UK government. They added that this fiscal year they had provided support for business tariffs above and beyond those offered in England, where tariffs have been discounted rather than abolished.

It has been confirmed that another 35 million

Sara Jones, Head of the Welsh Retail Consortium, said: “Welsh ministers understandably have recognized the burden brick-and-mortar stores are putting on their business rate bills and the multiplier freeze is positive, although the evidence is clear that the current rate is already much too high and is at the highest level of all UK nations.

“While the 50 percent and limited relief from the Welsh government for 2022/23 will prove beneficial to the smallest businesses, it will do little to support the businesses that pay two-thirds of retail tariffs and the majority of the country’s store clerks occupy.

“With little relief, this could well lead to an unnecessary loss of business and jobs and not create incentives for investments in all parts of the country. That, coupled with the lack of a firm commitment to more regular revaluations, is not “good news for any member of the public who wants a vibrant high street in their community where retail is the focus.”

David Chapman, UKHospitality Executive Director for Wales, said: “This help has been vital to helping our businesses as of April when we face a number of new challenges, including the return of VAT to 20 percent, higher social security contributions and food , Beverage and energy inflation.

“However, companies are eagerly awaiting to hear later today what new restrictions they will face as of December 27th. The sector is facing economic slaughter in the new year after an important Christmas trade was dismantled by pessimistic messages about the new Omicron variant. “

“We desperately need proportionate grants to get our businesses and workers out of the enormous debt and substantial trade we have almost been through in the past 21 months or so.”

Mr. Chapman added that a major business tariff reform needs to follow to address commercial inequalities between the hospitality industry and foreign and digital businesses.

“We have had a good dialogue with the Finance Minister and her colleagues, so we hope that a fairer tariff solution will be found for our companies that will allow them to focus on recreation and job creation,” he said.

There was also money in the budget for the climate and natural emergencies with targeted green investments of an additional £ 160 million in revenue and a total investment of £ 1.8 billion.

It includes funding to support the government’s commitment to a national forest, as well as biodiversity, active travel, circular economy, renewable energy, flooding and decarbonising housing. £ 1.6 billion of capital will be invested in the provision of quality housing, including £ 1 billion in public housing and £ 375 million in building security.

Continue reading
Continue reading

Future generations will also benefit from an additional £ 61 million in the Welsh Government Youth Guarantee and employability support, apprenticeship provision and personal learning account expansion.

Rebecca Evans, Secretary of State for Finance and Local Government said: “This budget will support the Wales of today and shape the Wales of tomorrow. It will help our public services get stronger, move Wales forward towards a net zero nation and create a more equitable nation where equality is central.

“We are still operating in a difficult financial environment, with our budget close to $ 3 billion.

“Revenue funding increases by less than half a percent in real terms between 2022-23 and 2024-25, and total cash funding decreases in each year of the spending review period – 11% less in real terms in 2024-25 than this year.

There is no better time to stay up to date on economic and economic news from your area. When you sign up for our daily newsletters, email notifications of breaking news and weekly summaries from all major sectors, you will receive our journalism direct to your email. To sign up, learn more and see all of our newsletters, follow the link here

“The UK Government’s spending review has had no effect on Wales and this budget is provided in that context. Although tough choices face to be made, we have been able to provide funding that will enable Wales to meet the challenges we face based on signature Welsh values ​​of environmental, social and economic justice. “

Continue reading
Continue reading

Related Articles