Budget announcement as they relate to licensing sectors
On 30 October 2024 the Autumn Budget 2024 speech was delivered by Chancellor Rachel Reeves. A look at the budget announcement as they relate to licensing sectors.
- The government is committed to supporting small businesses and the high street, by taking the following action:
- Transforming business rates in England over this Parliament to deliver a “fairer system” that protects the high street, better incentivises investment, and is fit for the 21st century. To meet the first of these objectives, the government intends to introduce permanently lower business rates multipliers for high street retail, hospitality and leisure properties (RHL) from 2026-27. To make sure this tax cut is fiscally sustainable, the government intends to fund it through a higher multiplier for the most valuable properties. This measure will provide certainty and support for the high street.
- Supporting the high street and small businesses in England during the interim period – for 2025-26, the small business multiplier will be frozen. Together with Small Business Rates Relief this will protect over a million small properties from inflationary bill increases, and RHL businesses will receive 40% relief (up to £110,000 per business). English local authorities will be fully compensated for the loss of income and administration costs resulting from these business rates measures.
- Consulting with businesses – alongside the Budget, a business rates Discussion Paper has been published, setting out the government’s priority areas for these reforms, and inviting industry to help co-design a fairer business rates system.
- Alcohol duty – The government will support pubs and the wider on-trade by cutting alcohol duty rates on draught products below 8.5% alcohol by volume (ABV) by 1.7%, so that an average ABV strength pint will pay 1p less in duty.
- Alcohol duty on non-draught products will increase in line with Retail Price Index (RPI) inflation from the same date. The Government said, “Increasing the non-draught rates of alcohol duty while reducing draught rates will encourage responsible drinking in social, controlled settings.”
- Support for spirits producers, such as the Scotch Whisky industry, by removing mandatory duty stamps for spirits and increasing investment in the Spirit Drinks Verification Scheme, which allows producers to verify the geographic origin of their products. The government will introduce legislation in Finance Bill 2024-25 to end the Scheme from 1 May 2025.
- To support small producers, the government will make the Small Producer Relief more valuable. The government will also consult on ways to encourage small brewers to retain and expand their access to UK pubs, maximising drinkers’ choice and local economies, including through provisions to enable more ‘guest beers’.
- The government will be publishing a consultation on whether to make the renewal of further public sector licences conditional on applicants demonstrating they are appropriately registered for tax.
- Confirming funding for MHCLG’s core Levelling Up Fund projects – providing £1.0 billion in 2025-26 to revitalise high streets, town centres and communities.
- VAT treatment of private hire vehicles – The government is considering the responses to the recent consultation on the VAT treatment of private hire vehicle services, as well as the impact of the recent Court of Appeal judgment and will respond to the consultation in due course.
- Remote gambling duty reform – The government will consult next year on proposals to bring remote gambling (meaning gambling offered over the internet, telephone, TV and radio) into a single tax, rather than taxing it through a three-tax structure. This will aim to simplify, future-proof and close loopholes in the system.
- Theatre Tax Relief, Orchestra Tax Relief and Museums and Galleries Exhibitions Tax Relief: 45%/40% rates from 1 April 2025 – From 1 April 2025, the rates of Theatre Tax Relief, Orchestra Tax Relief and Museums and Galleries Exhibitions Tax Relief will be set at 40% for non-touring productions and 45% for touring productions and all orchestra productions. These rates apply UK-wide. This measure was announced at Spring Budget 2024 and has been legislated.
- Categories: Alcohol/Ent/LNR, Bills/legislation, National News, Taxi/PH, Trade/industry
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