CBI calls for business rates review to halt 'regional unfairness'
Business lobby group the CBI has warned that the current business rates system is “entrenching regional unfairness” and have called for a review.
Head of the CBI John Allan said long gaps between rate revaluations were punishing areas of the country that were struggling, and hitting those "on the way up".
He called for an independent review of the “broken” business rate regime that is worsening the state of the high street.
“The business rates system has – over time – become uneconomical, unsustainable, and frankly, unintelligible,” he said.
He claimed the system contributed to the failure of struggling retailers such as Debenhams.
“Debenhams, once a stronghold of the British high street, fell into administration. But I’ve yet to read an explanation that doesn’t cite business rates as at least part of the cause,” he said.
MPs on the Treasury select committee are investigating the impact of business rates and considering alternatives to the property-based tax to make it fairer.
Chancellor Philip Hammond promised £1.5bn in rates cuts for UK businesses in his last Budget.
Financial Secretary to the Treasury, Mel Stride, said: "Business Rates help fund our vital public services and the local amenities and services that are so important to all of us.
"Following our review of business rates in 2016, we're introducing reforms that will make the business rates system fairer and lower business rates bills by £13bn over the next five years."