Autumn Budget – October 2021

Many of the Autumn budget announcements today will have a direct impact on the hospitality industry. We have included a summary of the key points below.

Hospitality Discount Business Rate 

Sunak has confirmed a new 50% business rate discount for companies in Retail, Hospitality and Leisure sectors, lasting for one year (up to a maximum of £110,000). The effective date for this to be implemented has not been announced as yet.

Additionally, from 2023, every business will be able to make property improvements and for 12 months, pay no extra business rates due to a rateable value increase.

Alcohol Duties

The planned increase in duty on spirits, wine, cider and beer that were due to take effect from midnight 27th October 2021 have been cancelled.

Alcohol duties have been reviewed and the new rates will come into effect from February 2023. However, the official rates have not yet been revealed. 

  • Simplification of alcohol duty rates – The number of rates will be reduced from 15 to 6
  • Stronger red wines, fortified wines, and high-strength ciders will see a small increase in their rates
  • Rates on many lower alcohol drinks including rose wine, fruit ciders, liqueurs, lower strength beers and wines to fall
  • All sparkling wines to pay same duty as still wines of equivalent strength
  • “Draught Relief” – This will apply a 5% cut to duty on draught beer and cider served from draught containers over 40 litres

Fuel Duty Increase Cancelled

The plans to increase fuel duty have now been cancelled.

National Living Wage

From 1st April 2022, the National Living & Minimum Wage are increasing. 

  • National Living Wage for over-23s – From £8.91 to £9.50 per hour
  • National Minimum Wage for those ages 21-22 – From £8.36 to £9.18 per hour
  • National Minimum Wage for 18 to 20 year olds – From £6.56 to £6.83 per hour
  • National Minimum Wage for under-18s – From £4.62 to £4.81 per hour

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