The Chancellor, Rishi Sunak delivered his budget earlier this afternoon in the midst of the coronavirus outbreak.
It has been announced that business rates will be abolished for small businesses with a rateable value of less than £51,000. Businesses eligible for small business rates relief will also be allowed a £3,000 cash grant.
The announcement will come as a huge relief for many businesses concerned over the impact of coronavirus on an already pressured situation on the high street. However, larger businesses will need to wait until the autumn for the announcement of measures which may benefit them.
Other terms of the Budget include a pledge that the business rate discount for pubs this year would be £5,000 (up from £1,000) and that the planned rise in beer, cider and wine duty will be cancelled.
It is a welcome emergency step in from the government but it leaves businesses to face their other costs such as staff, rents and stock, as well as tackling their supply chains. Larger chains, with their larger overheads (and higher rates bills), will also not take the benefit of the proposed changes.
With many already avoiding large crowds, and potentially the majority of the workforce looking to be working remotely as the virus spreads, tenants will be weighing up their options and we will see many retailers, restaurants, gym operators, cinemas and others seeking reduced rent on their properties over the forthcoming months to offset the anticipated reduction in footfall and trade.
Landlords will be equally keen to preserve the long-term outlook for their tenants as the foreseeable future remains uncertain. It will be a true test of the landlord and tenant relationship as each tries to mitigate the potential impact.
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