The Chancellor is reported to have delayed plans to reform Business Rates, despite requests by the CBI and other parties.
Annie Gascoyne, Director of Economic Policy, CBI, said: “Reforming the business rates system is vital for our local economies and for growth that is spread fairly across the UK. The right system would allow business to invest in the factories and offices where we work, and the shops, restaurants, hotels and local amenities that support the communities we live in. This is a crucial part of the puzzle as the economy recovers from the impact of the pandemic."
John Webber, Head of Business Rates at Colliers responded: “Reports that the Government will not be announcing any major overhaul of the Business Rates system in the forthcoming Budget is massively disappointing. It is frustrating that 18 months into a consultation which has already been delayed four times in the last year, that the Government is still not ready to respond to industry calls for proper reform. Delayed action will be a further hit to businesses – it will cost jobs and will do nothing to save the high street”
“Obviously we will need to wait to see what is in the detail in the Budget- but we would hope “tinkering” would include a recognition that in current form business rates are too high and that the multiplier at current levels of 51p in the pound is unsustainable for business. A 50p plus tax is just too high. The Chancellor, at the very least, should commit to a reduction of the multiplier to around 30p when he stands up at the end of the month. That would provide a significant relief to businesses across all sectors, particularly those in retail and hospitality.”