Government opens call for evidence on business rates reform

Submissions for the call for evidence will be open until October 31, and the government said its objectives for the review would be to “reduce the overall burden of the system on businesses” in the shorter term and consider “more fundamental” changes in the medium to long term.

Stakeholders are being asked to share their thoughts on future reforms and views on 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 also confirmed that the next business rates revaluation in England will take place in April 2023, based on values in April 2021 to better reflect the effect of the ongoing coronavirus crisis.

The British Retail Consortium (BRC) has welcomed the announcement and called the current business rates system a “burden”.

BRC director of business and regulation Tom Ironside said: “Business rates are a huge burden for retailers even in normal circumstances, and the current system has contributed to store closures and job losses across the country.

“Securing a review of the system is a longstanding priority for the industry, and so we welcome the announcement of the call for evidence, which progresses a key objective for the BRC and the industry.

“Over the coming weeks, we will be working closely with retailers to develop our response. The overarching objective of the review must be a sustainable system that is fit for the 21st century and which reduces the overall burden on retail.”