A group of organisations including ACS has written to the three main political parties, calling for fundamental reform of the business rates system.
The group has highlighted the following issues in the letter:
- The overall burden of business rates is too high and at a tipping point
- There is a need to increase the frequency of revaluations beginning in 2020 alongside a straightforward valuation process
- Current RPI indexation is unfair and not reflective of economic conditions, therefore, CPI indexation should be implemented beginning April 2018
- The system should incentivise businesses that invest in and improve properties
ACS chief executive James Lowman said: “One in three convenience store retailers are seeing their rates bills increase as a result of the revaluation, with some of the biggest increases coming on petrol forecourts due to the way that their rates bills are calculated. We do not believe the current system is fit for purpose, and have consistently called for long term reform of the rating system that sees everyone pay their fair share. The current business rates system also penalises rate-payers that want to invest in their store to improve their offering for customers. We want to see a rates system that incentivises investment and allows stores to offset investments against their rates bills.
The signatories to the letter are:
- Association of Convenience Stores
- British Retail Consortium
- British Chambers of Commerce
- Federation of Small Businesses
- Assoc. of Licensed Multiple Retailers
- British Property Federation
- British Beer and Pub Association
- Revo
The full letter is available here: https://brc.org.uk/media/156921/business-rates-letter-from-business-groups-philip-hammond.pdf
