BRC Continues To Push For Fundamental Reforms To Business Rates

Although research conducted earlier this month (July) found that 80 per cent of MPs in the UK believe the business rates system is “not fit for purpose”, the British Retail Consortium (BRC), which has been campaigning for a fairer tax system for businesses for many years, has shelved its proposals for alternatives, admitting it is too soon to be suggesting a format for a ready-made replacement.

However, the BRC is now pursuing agreement from the main political parties for the principle of “fundamental reforms” in its document called Business Rates: Manifesto Milestones.

Its research also found that 93 per cent of MPs agreed that the reforms of business rates is an important area for the future success of the high street and town centres, so is calling upon representatives of all parties to sign up to business rates reform in the run-up to the election next year.

The Consortium admitted that its suggestions, including the possibility of tax incentives for firms that employ the most people, or a system based on how much Corporation Tax they pay, have too many potential unintended consequences to be used as alternatives.

However, the BRC remains committed to its belief that the total amount of business rates should be reduced, that rates should flex with overall economic performance, be shared equitably across different industries and come with positive incentives for business.

Therefore, the next step in the Consortium’s campaign is to see the complete reform of the UK business rates system by 2017, having previously highlighted the impact the current business rates system has on the retail industry’s ability to invest and create employment opportunities.