November 2023
Dear Constituent,
Thank you for contacting me about support for pubs.
UK pubs play a vital role, supporting not only the economy but our local community. The Government remains committed to supporting them.
The Government's long-term strategy for the hospitality sector includes an extension to pavement licences, making it easier and cheaper for pubs, restaurants and cafes to make outdoor dining a reality. This will be implemented through the Levelling Up and Regeneration Bill. Additionally, the £150 million Community Ownership Fund allows community groups to buy assets so that they can continue to serve their local area. I am aware that rural pubs were among the local assets allocated funding in the scheme's first round, giving them a new lease of life for generations to come.
As announced in the Autumn Statement., the Government is cutting business taxes by £11 billion. This is the biggest business tax cut in modern British history through permanently enabling businesses to offset investments against their tax bills. This means that for every pound a business invests its taxes are cut by up to 25p. Companies can now permanently claim 100 per cent capital allowances on qualifying main rate plant and machinery investments. This will generate £3 billion of additional business investment each year, and £14 billion over the next five years.
The Government is extending the Retail, Hospital and Leisure relief meaning that 230,000 properties will benefit from almost £2.4 billion in support, protecting small businesses in our high streets and town centres. This means that a typical independent pub with a rateable value of £31,600 will get around £11,800 off their final business rates bill. Combined with the small business multiplier being frozen, they would benefit from £12,800 of support.
Further, a systematic review into taxes paid by smaller businesses and a consultation to expand the ‘cash basis’ will be conducted – a simplified way for four million sole traders to calculate and pay their Income Tax. The Government has also announced a range of measures to simplify customs import and export processes for small businesses.
For small businesses not applying the cash basis, the Annual Investment Allowance provides 100 per cent first-year relief for plant and machinery investments. From April 2023, this has been permanently set at £1 million, simplifying the tax treatment of capital expenditure for 99 per cent of businesses. Larger businesses will benefit from full expensing for the next three years, simplifying claims and investment decisions.
Thank you again for taking the time to contact me.
Best wishes,
Angela Richardson MP
Member of Parliament for Guildford, Cranleigh and our villages