Portsmouth businesses delighted as business rates abolished

In his budget this afternoon, chancellor of the exchequer Rishi Sunak announced that businesses with a rateable value below £51,000 have been abolished for a year.

The decision was made to support businesses during the coronavirus outbreak, which could lead to a decrease in sales.

Business rates are a government tax on businesses, based on the physical size of their shops.

But while many business owners say the abolition of these rates is a positive for Portsmouth, there are fears that it might not be enough.

Simon Dampier, owner of Heathen Chemistry Records in Fareham, says the move could encourage businesses back to the high street.

He said: ‘Because of how many businesses have struggled it could give them the boost they need.

‘This is really for the larger businesses, because the super-small businesses are actually exempt from business rates already.

‘But it is what stops companies from expanding because they can’t afford to pay an extra £4,000 or so per year, so this could help entrepreneurs to take that next step for their company.’

Dean Searl, manager of butchers Buckwells in Osborne Road, Southsea, said: ‘It’s a step in the right direction – it’s good for us as a business, that’s for certain.

‘I’m sure it’s going to be beneficial but it’s a question of whether this will be enough to save the retailers who are really struggling.

‘We’ve been hit hard ourselves so it’s tough to say how other businesses are going to fare.’

Ross McNally, chief executive of Hampshire Chamber, added: ‘The suspension of business rates for a year for companies involved in retail, leisure and hospitality is also welcome, as is his announcement that a fundamental review of business rates will take place, to be concluded in the autumn.

‘It remains to be seen whether or not these measures will be enough to sustain business confidence and keep the economy on track but they represent a prudent package at this stage.’