£13.6bn lifeline for business to 'soften the blow' of recession

BATTLING businesses were handed a lifeline as Jeremy Hunt promised a rates review to "soften the blow" of recession.

- Giles Sheldrick

The Chancellor said two-thirds would benefit from the boost for thousands of ailing pubs, restaurants and high street shops hammered by Covid and the cost of living.

His £13.6billion business rates relief package is designed to counter a levy rise set to kick in for hundreds of thousands of companies in April. Some 700,000 firms will benefit from the proposed tax cut.

Mr Hunt said the five-year temporary relief scheme meant two-thirds of properties would not need to pay any more in rates next year.

The Treasury had been in line to pocket a £3billion windfall from the annual rise on business rates bills based on September's CPI inflation rate of 10.1 per cent.

Business groups warned it would lead to store closures in what would amount to another hammer blow to Britain's beleaguered high streets.