Rates reform essential to future business growth

4th March 2014

Commenting on the BIS Select Committee's report on the retail sector and its call for fundamental reform of business rates, Dr Adam Marshall, Executive Director of Policy at the British Chambers of Commerce (BCC) said: -It is good to see Parliament recognise that Britain's business rates system is broken and in need of fundamental reform.

But politicians must remember that the business rates system is failing all of our businesses not just the High Street. Businesses are suffering from this pernicious tax, which gobbles up huge amounts of cash before a company even turns over a single penny, in city centres, industrial estates and office parks in all parts of the United Kingdom. We need thriving high streets, but business rates are also the reason many manufacturing and services companies put off investment and hiring decisions because their rates bills are just too high. -The BIS Select Committee is right to recommend that business rates are linked to a 12-month inflation average as an interim measure until the system can be fully reformed. This would enable companies to plan better, rather than leave their tax bill hostage to a single arbitrary statistic every September. We would also support a wider business rates amnesty for companies occupying empty premises. Empty property rates have single-handedly stopped many property developments from taking place over the last five years. They must also be re-assessed as part of any wider rates reform.