DORSET’S vital hospitality, retail and leisure sectors were given a further temporary break on business rates in the chancellor’s budget.

Rishi Sunak dismissed calls for the scrapping of business rates as “reckless” and “irresponsible” but announced a 50 per cent reduction for 2022-23, up to a maximum of £110,000.

Hospitality businesses were also boosted by a simplified alcohol duty system based on the strength of the drink, and by a five per cent cut in duty on drinks served from draught containers over 40 litres.

Restaurateur Andy Lennox, who leads the Wonky Table pressure group for Dorset’s hospitality industry, is campaigning for a permanent 12.5 per cent VAT rate for the sector. He said this was “the next fight” but said it was “good to see rates, beer and wine cuts”, which “should help keep inflation in check”.

David Chismon, partner at chartered accountants Saffery Champness in Bournemouth, said; “There were a number of announcements to business rates, but in particular the hospitality, leisure and retail sector which play a vital role in our local community will undoubtedly welcome the 50 per cent discounting.”

Critics said the business rates announcement fell short of the Conservatives’ manifesto pledge to fundamentally reform the system.

Helen Dickinson, boss of the British Retail Consortium, said: “This is bad news for every member of the public who wants a vibrant high street in their local community, with retail at its heart.”

Peter Court, business growth specialist at ActionCOACH Bournemouth, said: “There was an announcement of a consultation on technical changes to the way the tax works but no reduction in the levy in general. However, a 50 percent business rates discount for companies in the retail, hospitality, and leisure sectors was announced, lasting for one year and up to a maximum of £110,000 is welcomed to help those businesses recover properly, especially considering a potential increase of social distancing restrictions over this winter.”

He said he it “would have been good” to see the 12.5 per cent VAT rate in hospitality beyond the planned end date of March 31 next year.

Phil Hoyle, landlord of the London Tavern pub in Poulner, Ringwood, said: “The alcohol duty system has been a mess for a long time and needed sorting out.

“The pub sector has had a horrid time through the pandemic and this at least seems to have been recognised in the budget, as has pubs’ community importance.

“To bring sparkling wine into line with other wine makes sense and any reduction in duty on beer and cider will please my regulars.

“But the recovery from what we have been through will take a long time and any benefits from the budget might be wiped out by rises elsewhere. The devil will be in the detail.”

Chris Downing, director of Poole accountancy firm Inspire, said yesterday saw a “departure” from previous Tory budgets.

“The message had previously been to ‘fix the roof when the sun was shining’, bringing down debt and reducing the deficit,” he said.

He said the chancellor had instead pledged to invest to bring growth.

“There were large amounts of money directed to public services, including education, social housing, the health system and transport, but for business owners, many of the key updates, such as the increases to corporation tax next year and the new health and social care tax – effectively a 1.25 per cent tax increase on all earnings – had already been announced,” he said.

“The business rate discount of 50 per cent for retail, hospitality and leisure businesses will be a welcome relief for many across the region. Many business owners will be pleased to see the reforms to R&D tax relief, alongside additional funding in Innovate UK.”

Neil Andrews, managing partner of Dorset’s Coles Miller Solicitors, welcomed the £5billion funding to remove cladding from high-risk buildings.

“This is much needed – the cladding issue is huge, there’s a really big problem out there. It’s blighting properties,” he said.

“We’re acting for a number of blocks with cladding problems. Some leaseholders there are facing cladding bills of more than £50,000 each. Without government help, these properties may be unsaleable.”