The business select committee’s retail report published this morning urges the Government to fundamentally reform the rates system and introduce a total amnesty on small retail businesses moving into empty property for six months.
“Without a wholesale review, resulting in a new way of calculating Business Rates, the High Street—and with it community hubs attached to those centres—will fester,” the report said. Adrian Bailey MP, chair of the BIS Committee, said: “Amongst the many challenges they face, business rates are the single biggest threat to the survival of retail businesses on the High Street. “Since the system was created the retail environment has changed beyond all recognition. A system of business taxation based on physical property is simply no longer appropriate in an increasingly online retail world. “But this is a time for wholesale review and fundamental reform, not for tinkering around the edges. Business rates are not fit for purpose and minor administrative changes will not alter that. “The Government’s retail strategies are full of warm words that fail to address the most debilitating levy on existing businesses and the most crucial deterrent to new businesses appearing on the High Street – business rates. Fewer strategies are required, simple, decisive action is needed.” The committee also recommended that in the interim the Government review whether business rates are more appropriately linked to CPI or RPI and calls for annual increases to be linked to a 12 month average of either RPI or CPI, with a cap at 2%. Helen Dickinson, director-general of the British Retail Consortium (BRC), said: “This report must be the final nail in the coffin of the question: ‘do business rates need to be reformed?’ “They do. Business thinks so. A committee of Parliament thinks so. We very much hope the Government will think so too.” The BRC is currently developing alternatives to the current system, including a recent controversial suggestion that rates could be replaced with a tax on energy. Image source
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.