Questions have already been raised about how the long-awaited reform to business rates will take place, with the Government claiming that there is a lack of consensus from business leaders.
Speaking to the House of Commons in early December, Chancellor George Osborne announced plans to reform business rates through his Autumn Statement. The announcement came after repeat calls from businesses to reform the controversial rate, which is seen as a counter-force to growth and business sustainability.
In an interim report by the Treasury and the Department for Communities and Local Government, it is claimed that there is “no clear consensus” on how business rates should change, or whether properties should be revalued more often than they are now. For many, the revaluation of property is an important part of enabling businesses to adapt to evolving economic conditions. They are currently reviewed every five years.
Regular revaluations have been a key demand from retailers.
George Osborne commissioned the administrative review in last year’s Autumn Statement, and has since given the green light for a wider review following increased pressure from businesses.
The review stated: “Opinion is divided and there is no clear consensus on whether the Government should revalue properties more than it does now.
“The government therefore proposed to continue the discussion on the frequency of revaluations to understand better the main differences in opinion. “
Welcoming the findings of the interim support, EEF, the manufacturing trade body, suggested industry was happy with the current business rate makeup.
It stated: “The findings of the Government’s interim review, which received responses from a wide range of business sectors, demonstrates that there are elements of the current system of business rates which are widely recognised to be working well.”
