BUDGET 2016: The business rates reforms revealed in today’s budget could have a detrimental impact on those who use property to sell goods and services, British Council for Shopping Centres (BCSC) has said.
Business rate reforms will see around 600,000 companies pay no business rates by 2020, with more than half of all businesses paying lower rates, chancellor George Osborne announced.
Edward Cooke, director of policy and public affairs BCSC, said: “We are still of the opinion that annual uprating of business rates doesn’t reflect the way other businesses tax rates are determined and therefore makes businesses heavily reliant on the use of property to sell goods and services at a distinct disadvantage.
“The chancellor talked positively about retail in his speech, but the lack of urgency speaks louder than words – as does the fact government’s own figures show businesses will be paying £2bn more in business rates over the next five years.
“Whilst a move to CPI indexation is an improvement, it does not address flaws in the system. And further, you have to ask why business needs to wait four years for this change.
“The announcement to move towards more frequent revaluations is, however, to be welcomed – and on this aspect it is pleasing to see the chancellor has listened to the advice of businesses.
“However, there is still a critical element missing and that is ensuring more transparency in the calculation of the tax. Without change in this area, more appeals are inevitable and more frequent revaluations will be impossible.”
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