
In his Autumn Statement Chancellor of the Exchequer George Osborne promised a full review of the structure of the business rates system, alongside the extension of the two per cent cap on business rate increases for 2015.
Further assistance announced included the rollover for a further 12 months of the discount for retailers with properties of less than £50,000 rateable value, which will rise to £1,500 next year.
“We welcome the commitment to undertake a comprehensive review of the business rates system,” Helen Dickinson, British Retail Consortium director general, says.
“We want a system that brings investment and jobs to the high street without punishing retailers who trade online.
“The retail industry is the largest rates payer, contributing over a quarter of the total rates tax take.
“Today’s short-term support package will be of enormous help to those struggling to keep their businesses open on the high street.
“We look forward to playing a full part in the discussions that will take place with Government on the reform of the system.”
The government has pledged to publish its review in time for the 2016 Budget.
Under the current system, which has been in place since 1988, business rates are calculated every five years according to the rental value of the property a business uses.
The BRC is calling for an overall reduction in business rates and says they should flex with economic performance, as other taxes do.
The trade association also believes the system should include positive incentives, such as encouraging energy efficiency.