The chancellor must cancel the business rates rises due next April if she is truly serious about encouraging growth and saving the High Street.
That’s the view of John Webber, head of business rates at property agents Colliers, ahead of Wednesday’s Budget.
“If the chancellor does not take action to reduce this rates burden, we will see more retail and pub chains going into administration, particularly as the £2.4 billion retail, leisure, and hospitality relief is due to finish at the same time,” said Webber.
He is urging the chancellor to:
- Cancel the planned business rates increases in April
- Announce a plan to reduce the multiplier long term
- Review reliefs
- Extend retail, hospitality, and leisure relief until the next revaluation in 2026
- Extend empty property rates relief to 12 months, and to other sectors.
He also wants the chancellor to “round up the cowboys” in his industry. Business rates advisors are among the only providers of financial advice that do not need a licence to practice. Smaller businesses, in particular, fall victim to cowboy rating advisors because the system is too complicated to understand without professional help. Rogue agents often take upfront payments with the promise of lowering rates bills before disappearing with the fees.
Press speculation
“Labour won the general election in 2024 promising ‘to abolish the [business rates] tax’ and thereby ‘save the high street’,” said Webber. “Given the need to fill the £22bn black hole, a policy to cut the £30bn raised would seem to be out of the question, particularly given the state of local authority funding.
“There has been press speculation that the chancellor is looking at a lower multiplier for the retail and hospitality sectors. The [British Retail Consortium] for example has called for a rates corrector with rates paid on retail property reduced by 20%.
“Or that she may be considering a targeted tax on the major warehouse distributors in an attempt to level the imbalance between the rates bills paid by physical and online retailers. While we would condone support to the sector, both policies miss the point: that the burden of this tax is just too high on all business sectors.”
It’s Beer Today’s 20th anniversary this month!
I love updating this site, but it needs more Patreon supporters to survive into the future. Individual supporters are particularly welcome, and there are great options for commercial businesses which involve social media sharing, advertorial opportunities and advertising discounts. Find out more at patreon.com/beertoday.
