Out with the old – but new Chancellor faces same calls for rates reform
Whether the new Chancellor, Sajid Javid, is more sympathetic to the plight of UK businesses struggling with business rates remains to be seen, but lobbyist and pressure groups are wasting no time in beating a path to his door to discuss the issue.
Revo, the representative body for the UK retail property sector, has published an open letter to chancellor Javid calling for an urgent review of business rates before we find ourselves at the October 31 Brexit deadline. In the letter, Revo argued that government policy to make the UK attractive to international business is being undermined by the property tax which is out of date in today’s fast changing domestic and global economies.
The body – which includes property owners, occupiers, local authorities and advisers – described previous government actions around business rates as “tinkering”, and requested a meeting with Javid to discuss its recommendations which include:
- Lowering or, at least, freezing the business rates multiplier
- Removing downwards transitional phasing so that any benefit from a fall in the tax is experienced instantly
- A move to annual revaluations
- Exploring a new tax on online sales and services to offset a reduction in business rates.
The letter states: “the broken business rates system …in its current form, is simply out of place in 2019, damaging business, undermining capital investment and ruining communities at a time of unparalleled transformation in this digital age.”
Revo, I am sure, will have to get in line behind other industry stalwarts such as the CBI and British Retail Consortium which are equally desperate to get in the door at No 11, but there are no signs as yet that Javid is laying out the welcome mat for anyone wanting to discuss business rate reforms.
With dwindling options to grow tax revenue in the coming months, Rishi Sunak is reportedly looking at the most valuable properties to aid coronavirus recovery.
As the Government lays the groundwork for its latest business rates review, the idea of an online shopping tax is circulating as a possibility.
The Treasury has published the Call for Evidence for the fundamental review of business rates.