On March 16th the Government launched a review of business rates. The review will focus on examining the structure of the current system, which is paid annually on 1.8 million business properties in England.
The review will assess how businesses use property, what the UK can learn from other countries about business taxes, and how the system could be modernised so it better reflects changes in the value of property within the UK.
Chief Secretary to the Treasury Danny Alexander said:
“Our system of business rates was created nearly 30 years ago. Since that time, the worlds of commerce and industry have changed beyond recognition. I’ve been impressed by the representations made by the business community and I know that business rates are a considerable cost.”
Chris Harding, Managing Director at JPG advises:
“We should not be focussed on quick short term results for businesses as these changes are not likely to come into effect for another 2 years. What I would like to do, is encourage businesses to take part in the review and give a louder voice for all of the SME’s and get their views heard about business rates and how these can be amended to assist in economic growth.”
The latest announcement follows the government’s commitment in December 2014 to conduct a review of business rates and implement a £1 billion package to reduce the cost of business rates in 2015-16, with particular support for the smallest businesses and the high street.
For more information about the business rates review and how you can get involved visit their website.