16 March 2016

Today’s decision by the Chancellor of the Exchequer to raise the threshold for Small Business Rate Relief and make this permanent is good news for small hair and beauty salons and barbershops, the NHBF has said in response to the Budget.

Small Business Rate Relief is a tapered relief based on a business’ rateable value, and means the very smallest businesses are exempt from paying any business rates at all.

In his Budget, chancellor George Osborne pledged that, from April next year, the threshold at which the 100% relief comes into play will double from £6,000 to £12,000, with tapered relief from £12,000 to £15,000.

Just as importantly, he announced this extension will be permanent rather something that has to be renewed each year. This means some 600,000 small businesses would pay no rates at all “forever”, saving them nearly £6,000 a year, Mr Osborne said.

NHBF president Paul Curry gave a warm welcome to the announcement.

“The NHBF has long been calling for Small Business Rate Relief to be made permanent in this way, and so this is excellent news for salons and the high street in general. “It was also a nice touch that the chancellor specifically highlighted the benefit this will bring to our industry, arguing it would mean ‘a typical hairdresser in Leeds’ would pay no business rates”.

Paul welcomed the government’s announcement that corporation tax will reduce to 17% by 2020, saying:

“Anything that reduces the tax burden on profitable businesses and encourages them to invest and grow can only be a good thing, so the chancellor’s continuing commitment to reducing corporation tax is welcome”.

Finally, Paul gave a cautious welcome to the chancellor’s announcement that, from 2018, Class 2 National Insurance Contributions will be abolished for people who are self-employed.

Press enquiries: Hilary Hall, NHBF Chief Executive, 01234 834380 (direct line)

Notes to editors:

In the Budget, the government announced that from next April it will:

  • Permanently double Small Business Rate Relief from 50% to 100% and increase the thresholds.
  • Businesses with a property with a rateable value of £12,000 and below will receive 100% relief. Businesses with a property with a rateable value between £12,000 and £15,000 will receive tapered relief.
  • The Budget also announced the threshold for the standard business rates multiplier will be increased to a rateable value of £51,000, taking 250,000 smaller properties out of the higher rate.