Business Rates reform is “far from over”

Responding to the Embargoed Treasury Press Notice “Business rates bills to drop by a fifth for retailers from April”, Helen Dickinson, Chief Executive of the British Retail Consortium, said:

“The Government took an essential step towards longer term reform of the broken Business Rates system by the scrapping of downwards phasing of transitional relief. Finally, retailers are paying only what they owe, rather than overpaying their rates bill even when the value of their property had already fallen. Yet the need for Business Rates reform is far from over, and the changes made in the budget are a far cry from the fundamental reform promised in 2019.

“The broken Business Rates system is a drag on investment, jobs, and the vibrancy of town and city centres. For example, while other business taxes like Corporation Tax and VAT rise and fall with the changes in the economy, Business Rates must be paid in full whether firms are making a profit or a loss. This makes Business Rates a final nail in the coffin of many struggling stores; shutting shops, costing jobs and preventing new openings. Any meaningful plan for the future of our town and city centres must have wholesale reform of our Business Rates system at its heart.”