PRA largely welcomes Spring Budget

The Petrol Retailers Association (PRA) was largely satisfied with the Chancellors Spring Budget announcement on the extension of business rates relief.

“The three month extension of 100% relief on business rates, followed by a 2/3 discount for the last nine months of the 2021/2022 fiscal year will make a substantial difference to fuel retailers. This is particularly the case for those that have seen a sizeable reduction in revenue as fuel volumes have fallen by more than 20% over the past year.”

Although the Chancellor has decided not to follow the pragmatic decision in Holyrood to extend the 100% business rates relief for the entire fiscal year, the PRA are looking ahead to the fundamental review in the Autumn.

Brian Madderson, Chairman of the PRA, commented: “The new discounted rate from June onwards represents an excellent position to entrench the Uniform Business Rate (UBR) and create a more proportional and fairer system for forecourt businesses.”

The PRA was encouraged by the innovative temporary super deduction for companies to invest in new plant and machinery. The deduction would help to reduce the tax bill on new investments by businesses by 130% of the total cost over the next two years.

Brian Madderson said “This scheme provides the incentive during these difficult times for fuel retailers to invest in new automated car washing facilities, new food to go or shop renovations, and chilled display cabinets. It is also an helpful first step to investment in new electric vehicle charging points to meet the projected growth in demand for EV’s”