The Confederation of British Industry has called on the next prime minister to deliver annual business rates revaluations, as part of a sweeping manifesto to “get the UK economy back on track”.
CBI boss Carolyn Fairbairn said Brexit “has stalled progress on the UK economy for three years” and that British businesses are “urging the next prime minister to change this”.
The CBI published the three-part “business manifesto” today, which included calling on the next prime minister to “publish a road map to delivering annual business rates revaluations to increase alignment between the tax and the economic cycle at Budget”.
The winner of the contest between Boris Johnson and Jeremy Hunt to lead the Conservative Party and the country will be announced tomorrow.
The spiralling cost of business rates has long been an issue for many bricks-and-mortar retailers, which argue it puts their businesses at an unfair disadvantage compared to pureplay ecommerce companies such as Amazon.
In May, Tesco chief executive Dave Lewis called on the government to impose a 2% online sales tax to help relieve the business rates burden on physical stores. In the same month, John Allan, chair of the big-four grocer, said business rates have “over time become uneconomical, unsustainable and, frankly, unintelligible”.
The CBI manifesto also calls on the new prime minister to “improve transparency” around the Apprenticeship Levy, so “firms can see how their contributions are being used and spent”, and support smaller organisations “by publicly funding apprenticeships for non-levy payers”.
Fairbairn said while the UK “is a fantastic place to do business [the] reputation of our country has taken a dent in recent times” and Johnson or Hunt had a “real chance to inject a new lease of life into the UK economy and show the world we are open for investment”.
She also made a thinly veiled dig at both candidates, who have both publicly hinted at their willingness to take the UK out of the EU by October 31 without a deal.
She said: “Brexit uncertainty remains a challenging backdrop. We couldn’t clearer that a no-deal outcome will be seriously damaging. But it must not obscure the country’s long-term vision. It’s time for a renewed focus on bold, sustainable steps to drive up economic growth and share the benefits across the UK, including Scotland, Wales and Northern Ireland.”
The CBI also reiterated calls for “a clear re-commitment to infrastructure projects already approved” including Crossrail, the completion of which could be delayed until 2021.
Johnson, the frontrunner to succeed Theresa May, has reportedly been on a “charm offensive with British companies” in a bid to portray himself as pro-business.
Last week, Johnson addressed a group of company leaders including bosses from BP, Whitbread and Rolls-Royce, and pointed to his “business successes as London mayor”, according to the Financial Times.
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