Chancellor has 'golden opportunity ' to clarify business rates - Colliers

The Chancellor has a “golden opportunity ” to reassure businesses and clarify his business rates strategy, a businesses rates expert has said in anticipation of this week 's Budget.

John Webber (pictured), head of Business Rates at Colliers International, says it is essential Chancellor Rishi Sunak uses the system to look at the wider economic picture for the year ahead- not just the next three months for when the country exits lockdown.

Although the Chancellor has ruled out any immediate major response to the on-going consultation on business rates reform, now delayed until the autumn, the business rates team at Colliers suggests that he follows through on extending the business rates holiday for retail, hospitality and leisure sectors.

The holiday is due to end at the end of March.

Colliers says that the rates holiday should only be offered to companies in sectors that have faced genuine hardship as a result of the pandemic and provide rates relief for other sectors who have not had the advantages of the rates holiday.

Colliers estimate that a blanket six-month rates holiday for retail, hospitality and leisure would cost the government around £6 billion, but an application only system with widened usage to other sectors would be no more than £4 billion or £5 billion.

Among other recommendations Colliers say the Chancellor should also immediately reduce the business rates multiplier to £0.30, clarify rules on state aid, commit to a rate revaluation during 2023, bring in a business rates arrears moratorium and consider introducing an online sales tax.

Mr Webber commented: “Whilst we have been disappointed that the Chancellor has delayed the business rate review until the Autumn, he does still have a golden opportunity next Wednesday to bring some relief to businesses across the country who are struggling as a result of the unprecedented circumstances we have seen in 2020/21.

“We urge that he does not ignore business rates and that he reassures businesses that they will not be faced with either untenable bills from the end of the month or court action.

“Failure to do bring in significant reliefs to those companies that need it, may mean the bloodbath we are currently seeing in the retail and hospitality sectors could well spill across other sectors, leading to more closures and job losses across the board.

“Let 's hope it doesn 't come to that and the Chancellor shows that he listens to the pleas of businesses and provides them with the support they desperately need. ”