Sirius Bulletin - 11th April 2022
This bulletin provides a summary of topical news, announcements and policy developments affecting business across the UK.
Double-digit price increases for customers
The return of the 20% VAT rate in the hospitality sector and cost inflation running at 18% will result in double-digit price increases for consumers as operators struggle to survive.
Read more about the increases at: www.ukhospitaIity.org.uk/news/600787/Double-dig it-prices-rises-for-hospitaIity-customers-as-VAT-rises-to- 20- for-the-industry.htm
Arts and culture
Museums and galleries missing out on cash credits
A research paper by HMRC indicates poor uptake of vital tax relief for museums and galleries. The tax relief allows qualifying companies and charities to claim a cash credit on the costs of developing new exhibitions, up to a maximum of between 36% and 40%.
Read more about the relief at: www.icaew.com/insights/tax-news/2022/April-2022/Museums-and-galleries-missing-out-on-claiming-cash credits
Plan to make UK a global technology hub
The Government has announced plans for stablecoins to be recognised as a valid form of payment. This is part of wider plans to make the UK a global hub for cryptoasset technology and investment.
Read more about the plans at: www.chargedretail.eo.uk/2022/03/29/whsmith-ties-up-with-deliveroo-to-offer-rapid-delivery/?
EU lodges WTO dispute
The EU has filed a dispute at the World Trade Organisation (WTO) over the UK’s alleged discriminatory support for green energy projects. The EU claims that the UK’s procedure for granting subsidies for offshore wind energy projects unfairly favours domestic products and suppliers over foreign competitors.
Read more about the dispute at: www.bloomberg.com/news/articles/2022-03-28/eu-lodges-wto-dispute-over-u-k-green-energy-subsidies?
Producers could go out of business
Hundreds of egg producers are facing collapse as rising costs of fuel and energy combine with additional costs of keeping hens indoors during a bird flu outbreak. British free-range poultry farmers are calling on big retailers to increase the price of a dozen eggs by 40p as some smaller producers are already on the brink of shutting down.
Read more about the crisis at: www.theguard ian.com/environment/2022/ma r/31/cost-of-farming-crisis-egg-producers-plea-to-uk supermarkets-to-raise-price?
Mercedes introduces agency model
Mercedes Benz has announced that both Mercedes and Smart retail sales will take place on an agency basis from 1 January 2023. Most franchised car retailers buy new vehicles from the manufacturer and then resell the vehicles to end customers. Under the agency model the retailer would not buy the new vehicles, they would sell them on behalfof the manufacturer.
Read more about the model at: www.uhy-uk.com/insights/automotive-retail-and-agency-model
Rolling application window for Sustainable Farming Incentive
Defra has announced that the Sustainable Farming Incentive is expected to open for applications in England from June 2022. It had previously been expected that there would be a six-week application window, but Defra has removed the requirement.
Read more about the scheme at: www.fwi.co.uk/business/business-management/agricultural-transition/rolling-application-window-for sustainable-farming-incentive
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