Paul Martin, UK Head of Retail at KPMG, comments on the Spring Budget 2017.
Commenting on the detail within the Budget, including the announcements on business rates, Paul Martin, UK Head of Retail at KPMG, said:
“For smaller businesses who were facing the prospect of sizable business rate hikes, the Chancellor’s efforts to relieve at least some of the pressure will be welcome, particularly by those pulling the perfect pint. For larger businesses however, the Budget won’t have softened the blow much at all.
“The £435m relief fund will see a cap of £50 per month for small businesses coming out of small business relief, as well as a £300 million fund for local authorities to provide discretionary relief for businesses. It remains to be seen how much of this will benefit retail specifically.
“As expected, the Chancellor pointed to a longer-term review of the revaluation process, but the growing use of digital channels were also earmarked to be included in the next review, and online retailers are likely to have shuddered at the thought.
“Business rates aside, for some time now retailers have been facing strong headwinds across the board. Contributing to the perfect storm have been multiple pressures including: the significant devaluation of the pound post-Brexit; the increase in national living wage, and the apprenticeship levy to name just a few.
“In order to weather the storm, retailers big and small must remain agile in this changing and clearly tough political and economic environment. Whether Brexit or Budget, this has always been an industry geared towards survival of the fittest.”
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Simon Wilson, KPMG Corporate Communications
KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 13,500 partners and staff. The UK firm recorded a revenue of £2.07 billion in the year ended 30 September 2016. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 152 countries and has 189,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
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