Business leaders in plea to Chancellor to shake up Britain’s broken business rates regime
Business leaders are pleading for the Chancellor to shake up Britain’s broken business rates regime.
In a letter to Rishi Sunak as he prepares for his first Budget next week, organisations have demanded urgent reform.
With the struggling High Street facing a fresh onslaught from the coronavirus, groups including the British Chambers of Commerce (BCC), the Federation of Small Business, the British Retail Consortium and the British Beer and Pub Association, want business tax reduced.
Rates overhaul: In a letter to Rishi Sunak as he prepares for his first Budget next week, business organisations have demanded urgent reform
Adam Marshall, director-general of the BCC, said: ‘The system is one of many upfront costs holding back the growth potential of companies across the UK.
‘It’s time for the Government to deliver on its manifesto pledge to review and reduce business rates so firms can invest in their people and prospects instead.’
James Lowman, chief executive of the Association of Convenience Stores, said: ‘The system is no longer fit for purpose.’
Businesses say the system unfairly taxes those with lots of property – such as shops, pubs and cafes – while giving online sellers a competitive advantage.
High rates have been cited in dozens of cases of businesses going under, and critics say the tax risks turning thousands of UK main shopping streets into ghost towns.
The call comes as high streets brace for a slump if shoppers stay home to avoid catching the coronavirus.
The rates raise £30billion for the Treasury each year, and businesses say the smallest firms should not pay the tax at all, to support start-ups.