Retail, Leisure, and Hospitality Businesses Brace for £3.1bn Increase in Taxes
- £3.1bn increase in business rates from 1 April
- Retail, leisure, and hospitality businesses affected
- Occupied retail, leisure, and hospitality premises received a 100% discount during 2020/21 and 66% relief for the first nine months of 2021/22 up to £2m per business
- From 1 April 2022, new relief capped at £110,000 for larger businesses with a 50% relief on rates bills
- Cost of support halves from £5.76bn in 2021/22 to £2.66bn in 2022/23
- Altus Group warns of ‘dangerous cost of doing business crisis’
- Increased employment costs and surging utility bills also contribute to the challenge
High streets face a ‘dangerous cost of doing business crisis’ as the government implements a £3.1bn increase in business rates from 1 April, according to real estate adviser Altus Group. The Spring Statement analysis shows that councils in England estimate business rates income for 2022/23 will be £22.57bn after adjustments and reliefs, a 17% increase compared to the £19.29bn collected during the 2021/22 financial year. Retail, leisure, and hospitality businesses are affected by this change, which includes lower rates relief, increased employment costs, surging gas and electricity bills, and other operational expenses. Altus Group’s UK president, Robert Hayton, warns that these challenges could derail the pandemic recovery.
Factuality Level: 8
Factuality Justification: The article provides accurate information about the increase in business rates for retail, leisure, and hospitality businesses in England, citing a real estate adviser’s analysis. It also explains the changes in relief measures from previous years to the current year. However, it lacks personal opinions or sensationalism.
Noise Level: 3
Noise Justification: The article provides relevant information about the increase in business rates for retail, leisure, and hospitality businesses in England and its potential impact on their recovery from the pandemic. It also includes expert analysis from Altus Group. However, it could benefit from more context or data to support the claims made by Robert Hayton.
Financial Relevance: Yes
Financial Markets Impacted: Retail, leisure, and hospitality businesses in England
Financial Rating Justification: The article discusses the impact of changes to business rates on various sectors, which can affect their operational costs and potentially impact their financial performance. This has implications for these specific industries and could influence investment decisions and market trends.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.
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