Autumn Statement Summary
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During his Statement, the Chancellor announced the following measures as taken from the Autumn Statement document:
- Long Term Reform: The government will conduct a review of the future structure of business rates by Budget 2016. The review will be fiscally neutral and consistent with already agreed financing of local authorities. The government will publish its interim findings in December 2015.
- Retail Business Rate Discount: The government will be providing additional support for the retail sector by increasing the retail business rates discount for the retail sector with a rateable value of £50,000 or below, to £1,500 for a year from 1 April 2015. This will benefit an estimated 300,000 businesses.
- Annual Cap on Rates: The Chancellor has announced that the government will be extending the 2% cap on the Retail Price Index increase in the business rates multiplier to April 2016
- Small Business Rate Relief Extension: The Chancellor has announced further support for small business by extending the doubling of Small Business Rate Relief for a further year to April 2016. This means that an estimated 385,000 small businesses will continue to receive 100% business rate relief, with another 190,000 businesses benefiting from partial relief.
- Help grow talent in business: The Chancellor noted in his speech that almost 2 million people have taken up an apprenticeship since 2010 and that the Prime Minister has set a target of 3 million apprentices over the course of the next Parliament. To support employers in the creation of a more highly-skilled workforce, The Chancellor announced that the Government is abolishing employer's National Insurance contributions (NIC) on earnings up to the upper earnings limit (currently £41,865) for apprentices aged under 25. This will come into effect from April 2016.
- Increased help for exploring new export markets: The Government has announced that a £45 million package will be provided to help support British firms reach faster growing emerging markets. Of the £45million proposed, £20million will be used to provide support to first time exporters.
ACS (Association of Convenience Stores) Chief Executive James Lowman said: "We are delighted that the Chancellor has listened to our concerns on business rates by committing to a full review. Local shops will welcome the 2% cap on rates increases and the extension of the higher threshold for small business rate relief, alongside the increased £1,500 rates discount for shops on the high street. We are committed to rates reform that works for local shops and will play a full part in the review in the coming months."
British Retail Consortium director general Helen Dickinson said: "We very much welcome the commitment to undertake a comprehensive review of the business rates system. We want a system that brings investment and jobs to the high street without punishing retailers who trade online. The retail industry is the largest rates payer, contributing over a quarter of the total rates tax take."We look forward to playing a full part in the discussions that will take place with Government on the reform of the system."
John Rogers, Sainsbury's chief financial officer and chair of the BRC industry-wide group looking at the issue of business rates, added: "A clear consensus has emerged across businesses of all sizes and from all sectors - our current outdated system of business rates isn't just a retail problem, but a business problem. We will be fully engaging with the review to ensure we get a new system which is fit for purpose in the 21st century."
Commenting on both voluntary schemes and employers NICs, Dickinson said: "We are delighted that the Chancellor recognises that voluntary schemes have room for improvement and agrees with our proposals to take a more careful approach so that customers and companies all benefit from well thought-out and properly-costed schemes.
"The retail industry employs an estimated 100,000 apprentices and any support for increasing the number of young people able to get a head start working in our world-beating industry is to be warmly welcomed.
"The BRC congratulates the Chancellor on his recognition that apprenticeships are a great way to get young people into work. By eliminating employers NI contributions for young apprentices the Chancellor has made it much easier for businesses to take on an apprentice and give them the skills they'll need to succeed."