Spring Budget: Jeremy Hunt's business rate rise increase 'bitterly disappointing' say retail bosses

However, Mr Hunt did not make any change in his Budget.

Helen Dickinson, Chief Executive of the British Retail Consortium, said: “When shops we love shut down, when jobs we need are absent, and when investment we benefit from is lost, it’s our lives and our communities which lose out.

“The cost of living crisis has taken a toll on businesses and households. Consumer confidence remains low and retail sales volumes in 2023 were the lowest in four years. Yet the Chancellor has done little to promote growth and investment, instead hindering it with the business rates rise in April. This has consequences for jobs and local communities everywhere – from the smallest villages to the biggest cities.

“Government inaction will now cost the retail industry £470m extra every year in business rates – money that could have been better spent improving our town and city centres, investing in lower prices, and maintaining jobs and commerce all over the UK. How can a whopping 6.7 per cent tax rise in April be justified, when the Chancellor himself is saying inflation is forecast to be nearer 2 per cent?

“This rise in rates does not exist in a vacuum – retailers are also contending with cost pressures throughout the supply chain, in the context of the largest increase to the National Living Wage on record.

“Government has had five years to fix the problems with business rates, as they promised in their election manifesto. Retailers pay over £7 billion a year in business rates – over 22 per cent of the total raised by the tax. This is disproportionate, destructive, and any Government that is serious about growing the economy must address this as a matter of urgency.”

Alex Baldock, CEO of Currys, said: “It’s bitterly disappointing that the Chancellor has yet again failed to address retailers’ business rates burden.

"It’s no wonder that more and more stores are having to close their doors when you look at all the cost retailers are facing.

"Sky high business rates, coupled with big increases to wages, and misjudged proposals like those on recycling, heap ever higher costs on those of us with physical stores. The result will be higher inflation, lower growth and fewer jobs.”

One area where Mr Hunt did make changes to business rates was the introduction of 40 per cent relief for English film studios over the next decade in a move that will cost the Treasury £470m.

Dan Dickinson, Practice Lead for Grant Thornton in Yorkshire and the North East said:"Given the difficulties the hospitality sector is facing it was disappointing not to see any targeted support for pubs, restaurants and nightclubs beyond the freeze in alcohol duty. The cut to business rates for film studios however has the potential to boost the creative sector in the North."

There was also hope elsewhere that Yorkshire businesses could benefit from other measures announced in the Budget.

Stuart Clarke MBE, from communications consultancy Paceline and co-founder of Leeds Digital Festival, highlighted the £3.4bn promised by Mr Hunt to double investment in NHS technological and digital transformation measures.

He said the move “will undoubtedly benefit the many Leeds-based firms that are already leaders in this area”.

But he added: “It was, however, disappointing that the Chancellor didn’t announce improvements to the R&D Tax Credits scheme, instead setting up another ‘expert advisory panel’. The current system is too slow and complicated.”

Terry Jones, Head of BDO in Yorkshire and the North East, said: “The Chancellor was under pressure to deliver tax cuts and while this wasn’t forthcoming for businesses, with some hoping there would be a reduction to corporation tax signposted, taxpayers will welcome the national insurance cuts announced.

“Despite being pitched as a Budget for long-term growth, there was very little for business. The only obvious winner being the creative industries. Employers will welcome the measures announced today around lifting the child benefit threshold to £60,000 as it will help employees.

"For smaller businesses, lifting the threshold for VAT registration to £90,000 will be popular despite being limited. The proposed extension of full expensing to leased assets may also encourage investment by businesses in the region.

“It will be interesting to follow the consultation around the “British” ISA which could bring an additional £5,000 tax free allowance for individual investors but should also help to stimulate investment in regional growth businesses across the UK.”

​Amanda Beresford, chair of West & North Yorkshire Chamber of Commerce, said the Budget failed to address a “gaping hole” in regional infrastructure planning following the cancellation of HS2 to the North.

She said: “The improved economic forecasts from the OBR are welcome pieces of news given how concerning recent figures have been.

“Declining inflation and improved growth forecasts are encouraging updates after so many months of uncertainty.

“Measures to increase the VAT threshold will save many businesses from paying extra tax and freezes on fuel duty will help control companies bottom lines.

“It was also refreshing to see our creative and life sciences industries handed support, particularly given Yorkshire’s strengths in these sectors.

“However, what was missing was a long-term plan for our infrastructure. The cancelling of HS2 has left a gaping hole about our future connectivity and until this is addressed our productivity will continue to struggle.”