Responding to the government's
interim report on Business Rates, Jonny Haseldine, Head of
Business Environment Policy,
said:
“It's encouraging that the government
is willing to explore a slice system alongside a commitment to
reducing cliff edges around Small Business Rate
Relief.
“But the reality remains that these
are tweaks around the edges of a Business Rates system that is still fundamentally
flawed.
“It causes an unnecessarily large
burden on businesses regardless of their ability to pay and does
not make allowances for the significant structural changes that
have taken place in the UK economy over the last
decade.
“We need a permanently lower
multiplier of 45p for all businesses by the end of this
Parliament, regardless of sector.
“Proposals for a higher multiplier for
all properties with a Rateable Value over £500,000 also have the
potential to introduce unintended consequences. It would impose
significant added costs on a variety of larger hotels and
hospitality firms, who wouldn't
then be eligible for the lower RHL
multiplier.
“In
the longer term, we need a system that encourages growth and
investment. It must be more
responsive to the local and wider economic cycles and allow
greater investment back into the local areas where it is
paid.”
