Experts 'desperately disappointed ' by lack of business rates action

Business rates experts have expressed that they are “desperately disappointed ” that the Government will take no further action on business rates until the autumn.

The Treasury yesterday published an interim report of the review of the business rates system, delivered on what they dubbed 'Tax Day '.

A final report on the business rates system will not be published until the autumn.

The interim review listed what the government had done for the industry during the pandemic - primarily the rates holiday for the Retail, Hospitality, and Leisure sector last year worth over £10 billion to ratepayers, the extension of this relief at the Budget earlier this month and freezing the business rates multiplier in 2021-22, which it claimed would save businesses in England £575 million over the next five years.

However, when listing industry responses to review on the various concerns about the businesses rates system, responses were pretty unanimous - according to Colliers.

Respondents in the review are calling for the business rates system to be reformed, a reduction in the multiplier (UBR) to a percentage more palatable, a reform of the reliefs system, plant and machinery clauses to be reformed to reflect the growing green economy, more frequent revaluations, an overhaul of the appeals system and consideration of other taxes, such as an online sales tax.

“Everything that 's been said today has already been said on all previous consultations. It 's like Ground Hog day, ” said John Webber (pictured), head of Business Rates at Colliers.

“We say what we think from what we see in the marketplace and from our clients, we submit evidence, the Government produces a report and then usually nothing happens. I know the government is planning to reveal its thoughts in the Autumn, but I can 't understand why they can 't reveal them now when the evidence is so unchanged? ”

Mr Webber added that the lack of action by government was not only disappointing, but also felt like they were kicking the can down the road yet again.

He said: “Everything that I and my fellow professionals have been saying for years appeared in the interim report today. We are not sure why the Government needed a special “Tax Day ” to let us know this. We are desperately disappointed there is no indication of further action on business rates until the autumn, which seems like kicking the can down the road yet again.

“But it 's worse than that. At this stage we don 't know if the government is going to do anything to address the 400,000 office based businesses who are appealing their business rates in the largest MCC caused by a single event in rating history.

“No action at this stage in the economy is harmful given the number of companies facing financial ruin. The Government had a real chance to grab the bull by the horns today. Instead it looks like it hasn 't even started the walk to the field. ”