The 16th of March saw George Osbourne announce his eighth Budget as Chancellor of the Exchequer. How does the latest Budget affect people in catering and hospitality?
George Osbourne appears to be championing small businesses in the Budget, with the following announcements:
1. Beer, Cider and Spirits Duties Frozen
UK beer tax duty is currently the second highest in Europe, so it's encouraging for the hospitality industry to see this frozen over the last four consecutive Budgets.
3. Business Rate Relief Higher Rate Threshold Raised to £51,000 (April 2017)If your business is worth up to £51,000, this means you'll pay less tax - up to £6,000 per year less according to the Chancellor, which affects around 600,000 small businesses. This is especially useful for small catering start-ups, independents and private chefs, although it's not being phased in until 2017.
4. National Insurance Class 2 Contributions Abolished (as of 2018)
As they say, "every penny counts" - and this change saves money and time. One less tax to have to calculate when it's time to do your tax returns.
5. Fuel Duty Freeze
Tax on fuel is currently nearly 58p per litre. It looks as if the Chancellor has resisted the temptation to raise the tax which is a relief for any mobile business.
In summary, many political commentators have suggested the latest budget is somewhat unremarkable, with some criticism of the Chancellor for not helping out medium sized businesses such as hotel or restaurant chains. However there are some welcome changes to help your bottom line in the future. Other changes such as the new sugar tax and corporation tax changes may have a longer term impact on the catering and hospitality industry, although it looks like we'll have to wait and see!
Of course, a great way to save money on catering equipment would be to check out our special offers section where there's up to 65% off selected products.
Do you think the Budget could affect your business? Feel free to leave a comment below or find us on Facebook.
By David Evans