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You can find the current article at its original source at https://www.theguardian.com/business/2017/feb/23/business-rates-row-pressure-grows-for-total-rethink-on-controversial-tax
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| Business rates: pressure grows for total rethink on controversial tax | |
| (about 17 hours later) | |
| The government is under growing pressure to overhaul the business rates system rather than just offer help for small firms affected by the revaluation of properties. | The government is under growing pressure to overhaul the business rates system rather than just offer help for small firms affected by the revaluation of properties. |
| Theresa May, the prime minister, and Sajid Javid, the communities secretary, told parliament on Wednesday that small businesses facing a sharp increase in their business rates bill from April could receive support in the budget next month. | Theresa May, the prime minister, and Sajid Javid, the communities secretary, told parliament on Wednesday that small businesses facing a sharp increase in their business rates bill from April could receive support in the budget next month. |
| However, business leaders and MPs are now pushing the chancellor for a wider review of the controversial tax. | However, business leaders and MPs are now pushing the chancellor for a wider review of the controversial tax. |
| Eleven leading trade bodies – including the CBI, the British Retail Consortium and the British Chambers of Commerce – have written to MPs calling for an overhaul of business rates. The letter says the system is “unfair, outdated, and deters investment” and warned that the tax will be a “key factor in shaping investment and growth in the UK economy for decades to come”. | Eleven leading trade bodies – including the CBI, the British Retail Consortium and the British Chambers of Commerce – have written to MPs calling for an overhaul of business rates. The letter says the system is “unfair, outdated, and deters investment” and warned that the tax will be a “key factor in shaping investment and growth in the UK economy for decades to come”. |
| Retail bosses met with Greg Clark, the business secretary, to discuss the government’s industrial strategy earlier this week. There have also been separate discussions with Clark about business rates. | Retail bosses met with Greg Clark, the business secretary, to discuss the government’s industrial strategy earlier this week. There have also been separate discussions with Clark about business rates. |
| Helen Dickinson, chief executive of the BRC, said: “One of the key pillars of the [industrial] strategy is to drive growth around the country. Yet under the current business rates system the divide between the most prosperous and deprived areas will get bigger as a result and more businesses will decide to close in those less successful communities. | Helen Dickinson, chief executive of the BRC, said: “One of the key pillars of the [industrial] strategy is to drive growth around the country. Yet under the current business rates system the divide between the most prosperous and deprived areas will get bigger as a result and more businesses will decide to close in those less successful communities. |
| The burden needs to fall across the board by recognising that the current system is no longer workable for the retail industry as a whole, or indeed any type of business.” | The burden needs to fall across the board by recognising that the current system is no longer workable for the retail industry as a whole, or indeed any type of business.” |
| Gareth Thomas, the Labour and Co-operative MP, has tabled an amendment to the local government finance bill that calls for a review into business rates and the impact on local authorities from changes to the tax. Thomas is understood to be hopeful of winning support from some backbench Tory MPs in a vote next week. A rally in Hackney, east London, to protest about business rates on Friday is expected to be attended by local MP Meg Hillier and the mayor of the borough. | Gareth Thomas, the Labour and Co-operative MP, has tabled an amendment to the local government finance bill that calls for a review into business rates and the impact on local authorities from changes to the tax. Thomas is understood to be hopeful of winning support from some backbench Tory MPs in a vote next week. A rally in Hackney, east London, to protest about business rates on Friday is expected to be attended by local MP Meg Hillier and the mayor of the borough. |
| The boss of Intu, which owns some of the UK’s biggest shopping centres including the Trafford Centre in Manchester and Metrocentre in Gateshead, said the “extreme” business rates climate was a bigger deterrent to international retailers considering opening shops here than the uncertainty created by the Brexit vote. | The boss of Intu, which owns some of the UK’s biggest shopping centres including the Trafford Centre in Manchester and Metrocentre in Gateshead, said the “extreme” business rates climate was a bigger deterrent to international retailers considering opening shops here than the uncertainty created by the Brexit vote. |
| David Fischel, chief executive of Intu, said: “Retail has become a more global business. Retailers have choices, they don’t have to come to the UK. If they think it’s tougher here because of extreme business rates they will deploy capital where they can make the most profit.” | David Fischel, chief executive of Intu, said: “Retail has become a more global business. Retailers have choices, they don’t have to come to the UK. If they think it’s tougher here because of extreme business rates they will deploy capital where they can make the most profit.” |
| Fischel added that the core issue was that the multiplier – which determines what proportion of a property’s value is charged for business rates – is too high at 48p in the pound and the government needs to develop a long-term plan to bring it down to a level competitive with international peers. | Fischel added that the core issue was that the multiplier – which determines what proportion of a property’s value is charged for business rates – is too high at 48p in the pound and the government needs to develop a long-term plan to bring it down to a level competitive with international peers. |
| He also said the government needed to come up with a “fair” way of determining the appropriate rateable value for “sheds masquerading as shops”. There has been anger in some quarters at the smaller bill increases faced by online retailers such as Amazon, who operate from out-of-town warehouses. | He also said the government needed to come up with a “fair” way of determining the appropriate rateable value for “sheds masquerading as shops”. There has been anger in some quarters at the smaller bill increases faced by online retailers such as Amazon, who operate from out-of-town warehouses. |