• Car Dealer Plus
No Result
View All Result
  • Latest
  • Used Cars
  • Live
  • Forum
  • Power 2020
  • Used Car Awards
  • CDX
  • Knowledge
  • Suppliers Guide
  • About Us
  • Latest Issue
  • Top 100
  • CD Plus
  • Latest
  • Used Cars
  • Live
  • Forum
  • Power 2020
  • Used Car Awards
  • CDX
  • Knowledge
  • Suppliers Guide
  • About Us
  • Latest Issue
  • Top 100
  • CD Plus
No Result
View All Result

Calls to extend business rates relief for another year intensify after car dealers saved thousands in tax

James Baggott by James Baggott
February 12, 2021
0
Home News

Ministers are in talks with the Treasury about extending the business rates relief beyond March.

The move, which last year helped thousands of car dealers save vast sums of money and prevented many from closure, would be a welcome relief to the industry.

Business Secretary Kwasi Kwarteng told MPs yesterday he is working with Chancellor Rishi Sunak on ‘what further support we can supply’, following calls to extend the business rates break beyond March.

His ministerial colleague Paul Scully acknowledged firms have raised concerns over a ‘cliff-edge’ and also over fixed costs they have to deal with, adding: ‘All of which we recognise, and (we are) continuing our conversations with the Treasury.’

Labour accused Kwarteng of being ‘all mouth and no trousers’ and pressed for an extension to business rates relief and furlough.

It is thought further support for businesses will be announced by the chancellor in the Budget on March 3.

A more flexible furlough scheme is being considered as well as the business rates relief extension. The Federation of Small Businesses has called for the government to extend rates for another year to April 2022.

Mike Jones, chairman of ASE Global and compiler of the Car Dealer Top 100 list of most profitable dealers, said extending the relief was ‘logical’.

He told Car Dealer: ‘Alongside the furlough scheme, rates relief has been vital to help retailers reduce costs when showrooms were required to close.

‘While I am expecting significant pent-up demand when we fully reopen, vehicle sales have taken a huge hit whilst the industry is required to only operate remotely.

‘Reducing costs is vital during this period and rates are normally a large fixed cost. In addition, it makes logical sense to me that the rates relief should continue for as long as the showrooms we pay the rates on are unable to welcome customers.’

Retailers, leisure and hospitality firms have not had to pay rates for the current financial year after the government launched a rates holiday at the onset of the pandemic.

However, the property tax is currently set to restart in April for the new financial year despite non-essential retailers, including car dealers, remaining shut due to lockdown restrictions.

Speaking in the Commons, Kwarteng said: ‘I’m in constant dialogue with the chancellor. We’re looking at the economy, the situation evolving daily, minute by minute almost, and we hope that we can provide the flexible support that we have done in the last year.’

Shadow business minister Lucy Powell earlier said: ‘I’ve listened to the Secretary of State’s (Kwasi Kwarteng) answers so far and I’m afraid he’s all mouth and no trousers, so let’s try again.

‘Businesses face a £50bn bombshell in April, yet many in hospitality, retail and services won’t even be open by then. Councils are sending out business rate bills as we speak and difficult decisions are being made now.’

Kwarteng said a ‘flexible’ approach to financial support is needed to help firms.

He added: ‘I’m in regular contact with the chancellor, he has had a nimble approach and I look forward to engaging with him on what further support we can supply.’

  • Join our breaking news WhatsApp group
  • Listen to the latest Car Dealer Podcast
  • List of the Top 100 profitable car dealers in the UK

Related Posts

Volkswagen Passat GTE plug-in electric car being charged
News

VW suffers post-tax profit drop of 37 per cent but says that was better than expected

February 26, 2021
Supercar graphic
News

Moving on up: Here are the top 10 used supercars to buy if you want to see a return on your investment

February 26, 2021
Subaru sign via Newspress
News

Subaru adds three dealers to network with plans for at least 15 as part of restructure that will see 10 leave

February 26, 2021
G3 Motorhouse in Failsworth from Google
News

Car dealers must pay out thousands after Trading Standards investigation found they’d clocked cars

February 26, 2021
Mike Hawes
News

SMMT calls for dealers to open ‘ideally before April 12’ as car production levels slump to 12-year low

February 26, 2021
Online car sales on an iPad
News

Fifth of car buyers think online sales will overtake those in showrooms by 2025 – but many think it’ll never happen

February 26, 2021

Want the latest news?

Sign up to Car Dealer's daily news email updates

Subscribe
How many car dealerships does each manufacturer have in the UK? Car Dealerships Locations List 2021 revealed
News

How many car dealerships does each manufacturer have in the UK? Car Dealerships Locations List 2021 revealed

February 24, 2021
Used Car Awards with Mike Brewer and James Baggott graphi
News

Who won what at the Used Car Awards 2020? Mike Brewer reveals our winning car dealers

February 11, 2021
Car Dealer issue 156 front cover and Used Car Awards
Online Magazine

Out now: Car Dealer issue 156 features our Used Car Awards, H.R. Owen CEO Ken Choo and lots more

February 23, 2021
Used car market stronger than ever as August sees sales up by nearly 50 per cent for Big Motoring World
News

Opinion: Here are 10 reasons why I think there’ll be a rapid recovery in car sales when lockdown ends

February 16, 2021
Trophy Cars forecourt
News

Investigation: Meet the hyper-specialist car dealers making their money from weird and wonderful motors

February 11, 2021
Become a Car Dealer Plus member and get more out of this website including free legal advice
News

Become a Car Dealer Plus member and get more out of this website including free legal advice

January 15, 2021
Car Dealer Top 100 – The list in full of the most profitable car dealers in the UK
Car Dealer Top 100

Car Dealer Top 100 – The list in full of the most profitable car dealers in the UK

February 10, 2021
Bitcoin ATM terminal
News

Will car dealers in the UK accept Bitcoin for payment? Dealers speak out after Tesla plans to accept cryptocurrency 

February 18, 2021
  • Latest
  • Used Cars
  • Live
  • Forum
  • Power 2020
  • Used Car Awards
  • CDX
  • Knowledge
  • Suppliers Guide
  • About Us
  • Latest Issue
  • Top 100
  • CD Plus
Call us: 020 8125 3880

© 2020 Blackball Media

No Result
View All Result
  • Car Dealer Plus
  • Latest
  • Used Cars
  • Live
  • Forum
  • Power 2020
  • Used Car Awards
  • CDX
  • Knowledge
  • Suppliers Guide
  • About Us
  • Latest Issue
  • Top 100

© 2020 Blackball Media

Log In
Register
Register
Server C