Originally written by Timothy Adler on Small Business
Over 50 retailers have called for Chancellor Sajid Javid to fix the “broken business rates system”, which they say is key to boosting investment and revitalising the economy.
Some of the high street’s biggest names have written to the Chancellor, including national chains such as Greggs, Boots, Sainsbury’s and John Lewis.
“Retail accounts for 5pc of the economy but pays 10pc of all business taxes and 25pc of all business rates. The rate has risen by 50pc since business rates’ inception in the 1990s, and 20pc in the last decade alone,” said the letter, co-ordinated by the British Retail Consortium and backed by bosses of M&S, Iceland Foods, Primark and dozens more.
The letter asks for four fixes that would address many of the challenges posed by business rates:
A freeze in the business rates multiplier
Fixing transitional relief, which currently forces many retailers to pay more than they should
Introducing an “Improvement Relief” for ratepayers
Ensuring that the Valuation Office Agency is fully resourced to do its job
Implementing these four recommendations “could be undertaken quickly, would reduce regional disparities, remove barriers to the proper working of market forces, incentivise economic investment, and cut away at least some of the