Commenting on the retail and leisure sectors, Steve Rodell, Managing Director – Retail & Liesure, said:

“While, in today’s Budget, the Government committed to economic growth, it also committed to hikes in taxes for businesses around the country, including Capital Gains Tax and a rise in employers’ National Insurance contributions by a lower £5,000 threshold. There will also be an added burden to businesses from an increase in the National Minimum wage that will somehow need to be paid for.  On the plus side, small employers will benefit from an increase in the Employment Allowance from £5,000 to £10,500.

The increase in the National Living Wage is likely, and NI will likely be passed to consumers in a higher process, but measures to increase household income will help retail and leisure consumer spending.  

The current 75% discount to business rates for retail and leisure businesses is due to expire in April of next year but will remain at a reduced 40% discount with a cap of £110K.  It will be interesting to see how this may affect growth plans. It is good news that small business rate relief stays in place and that the multiplier for retail hospitality and leisure will be set at a lower rate from the 2026 revaluation.

Fuel duty is frozen for another year and the Government will maintain the current 5p discount to help households. However, it has continued to emphasise the importance of investment in green infrastructure and technologies needed to achieve net zero, as we’ve seen with its introduction of the Vehicle Excise Duty. Car drivers who have been put off electric vehicles recently haven’t seen any incentives to turn their heads in this budget.

In the retail and leisure sectors, many deals are moving forward regardless, but at the higher end of the deal value range, some stakeholders have been adopting a ‘wait and see’ approach but we should see these move forward now.”

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