Colliers step up business campaign rates at Tory conference
John Webber, head of the Colliers business rates team voiced calls for reform of the business rate system at the Conservative party conference.
Colliers has been highly vocal of the business rates system, which unfairly penalises the retail sector who pay over a quarter of the total £26 billion (net) business rates tax bill, but whose gross value is less than 10% of the UK economy.
High business rates have been cited as one of the key factors in the decline of many of the UK 's high streets.
The fringe event, 'Are Business Rates Killing the High Street ' was sponsored by the Centre for Policy Studies and Colliers. The event was also attended by several campaigners and MPs.
Given current levels of inflation, Colliers has calculated that a downwards transition scheme would mean retail businesses expecting a massive fall in their rates bills in line with rents, will in fact pay £1.65 billion in business rates more than they should do in 2023, overall, £2.68 billion more than they should do in the three years of the new list.
John Webber (pictured) said: “We have been trying to campaign for a proper reform of the business rates system for years; in particular to rebase the multiplier to a level that businesses can cope with - such as 30p in the £1 as opposed to the current 50p tax.
“And on the immediate front to make sure the government does not bring in a downward transition scheme following Revaluation 2023, which would limit the immediate rates bill reductions that the retail and hospitality sectors are entitled to and desperately need to see. ”
“If the Government states it is committed to removing downward transition it will look, on the face of it, to be giving a large tax cut -when in reality it is just asking ratepayers in struggling towns to pay the correct amount. ”
“Time and time again we have seen consultations on the business rates system and time and time again key experts outline the key reforms we need to see. Yet nothing meaningful ever happens. Proper reform gets brushed under the carpet or put in the “too difficult box ” and the old system creaks on or is even made more complicated by new, unhelpful tinkerings to the system. ”
Webber has spent the last six months meeting with government members and MPs on both sides of the house and other government officials whilst closely monitoring the political debate about business rates. Colliers has also sent a newsletter to MPs explaining and highlighting business rates issues.