Find out why business leaders in Peterborough have given a cautious welcome to the budget

A year long suspension of business rates for many retail, leisure and hospitality firms and a freeze on beer and spirits duty were among some of the eye-catching measures announced by Chancellor Rishi Sunak in his first Budget.The business rates holiday, which applies to businesses with a rateable value of less than £51,000, should prove a welcome boost for many small firms struggling with online competition and the impact of the coronavirus.

Mr Sunak told MPs: "This is a tax worth over £1billion, saving each business up to £25,000."

John Bridge, chief executive of Peterborough Chamber of Commerce, said: "It is brilliant that business rates have been suspended for a year. It should be a boost to many small businesses in the city.

"But the whole business rates system is not fit for purpose.

"I am just glad that Mr Sunak has also announced a review of the whole system later in the year.

"Overall, I though the Chancellor did a very positive job and brought out a Budget that dealt with a number of short term issues."

Adrian Posnett, managing director of Oakham Ales, in Maxwell Road, Peterborough, who had called for a substantial cut in duty on beer, said: "I suppose freezing the duty is useful and certainly better than increasing it.

"It is still far too high though but I guess always will be."

CAMRA Chairman Nik Antona said: "Against the backdrop of industry fears on Coronavirus, it is good to see the Government has continued to recognise the value of pubs to the economy and society by freezing beer duty in the Budget.

"Brewers and pubs companies must now pass any savings on to consumers. 

“The abolition of business rates for pubs with a rateable value under £51,000, and the £5000 discount for those with a value up to £100,000 is great news for qualifying pubs, and we are glad that the Treasury has listened to our calls for action.  

“The announcement of a review of the business rates system is welcome, and this must happen as soon as possible so that we can fix the root issues with this unfair system and save our pubs from extinction.”

Mike Cherry, chairman of the Federation of Small Businesses (FSB), said: "This is a pro-small business Budget, which has delivered a high streets bonus, a series of Conservative manifesto promises to small businesses, and emergency steps to support small firms through the coronavirus outbreak.

“Suspending business rates for small high street firms is a huge bonus for our town centres and high streets.

"Together with extra cash for those that already qualify for small business relief, this shows a real commitment to supporting small businesses at the heart of communities.

"The case for fundamental reform to bring down the burden of such a regressive tax on bricks-and-mortar businesses is now stronger than it has ever been, and FSB is ready to help the Government deliver this.

Mr Cherry added: "One of FSB’s main asks at this Budget was a cut to the Jobs Tax, an easing of the cost of employer National Insurance, and we are very pleased to see such a pro-growth, pro-employment measure delivered for all small employers.

"A National Insurance holiday for small firms employing military service leavers will incentivise tapping the skills and potential of those joining the workforce after a career in the armed forces.