ACS (the Association of Convenience Stores) has welcomed the publication of the long-awaited call for evidence on reform of the business rates system.
The call for evidence, which will be open to submissions until 31st October, considers several areas of the business rates system and calls for views on how the system can be reformed, including whether:
- The current system of reliefs and exemptions strikes the right balance and targets the right businesses
- Reliefs should be set centrally or by local government
- There should be changes to the controversial Check, Challenge, Appeal system
- An entirely different alternative to business rates should be considered, including an online sales tax and a capital value tax
The Government’s objectives for the review are to reduce the overall burden of the system on businesses, improve the current system, and consider more fundamental changes in the medium to long term.
ACS chief executive James Lowman said: “The rates system still acts as a barrier to investment, with retailers in fear of improving their stores because of the increase in rates bills that follows. We urge the Government to consider all available options as part of the plans to reform the business rates system to help retailers invest.”
In submissions to Government ahead of the Budget, Autumn Financial Statement and other fiscal events, ACS has called for the business rates system to incentivise investment, rather than penalise it through higher rates bills. In February this year, a report from the Ministry of Housing, Communities and Local Government on the future of town centres and high streets reflected ACS’ concerns about the rates system discouraging investment.
The full details of the call for evidence are available here: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/902378/Business_Rates_Review_-_CfE.pdf
A Ministerial Statement in Parliament today has also confirmed the next business rates revaluation in England will take place in April 2023, based on property values in April 2021 to reflect the impact of Covid-19.
