Businesses need swift action on VAT and rates relief - Chamber

An extension to existing business rates and VAT relief measures are among a number of actions the Government must urgently take to help hard-hit firms survive, business leaders said today.

Ahead of the Chancellor 's budget on 3 March, Greater Birmingham Chambers of Commerce is working with its members to call for stakeholder support on key measures from the Back Our Businesses report.

Back Our Businesses focuses on 10 key areas in which firms need urgent support in order to survive and thrive in the wake of the Covid-19 pandemic.

The report launched last month in response to the third national lockdown.

This week, the Chamber is calling for:

• Urgent confirmation of an extension to 100 per cent business rates relief for the most impacted sectors throughout the 2021/22 financial year
• Bringing forward further interest free deferral of VAT payments for Q1 and Q2 2021
• Extending existing VAT relief measures for the hospitality sector and visitor attractions
• Expanding VAT reliefs to include cold food takeaways, cold beverage takeaways and alcoholic beverages

Although the Government has rolled out a number of business support schemes since last March, the Chamber says businesses in the hardest-hit sectors have still been unable to operate.

Henrietta Brealey (pictured), chief strategy officer at the Chamber, said: “The Government 's support for businesses so far has been unprecedented - but as the events of recent weeks have shown - these unprecedented times are not over yet.

“Our members in the most impacted sectors have been unable to operate fully (or at all in some cases) since 23 March 2020.

“Extending 100 per cent business rates relief for the most impacted sectors, extending VAT reliefs and bringing forward further interest fee deferral of VAT payments will go a long way to helping businesses manage cash flow and overheads.

“As the Prime Minister said himself recently 'a stitch in time saves nine ' and saving previously viable businesses and jobs through this short term dramatic disruption will result in a stronger economic and social outlook (and associated higher tax returns and lower defaults on Government backed loans) for many years to come.

“A vaccine is on its way, the end at last appears in sight - let 's not let more businesses fall at this final hurdle. ”

Read back our Back Our Businesses.

Chamber members can join this call to action using the social media hashtag #BackOurBusinesses