​Institute of Directors and CBI call for business rates reform

The Institute of Directors and the CBI have both urged Javid to “turn rising optimism into a surge in investment across the UK” by putting policies in place to benefit business.

Leading corporate lobby group the Institute of Directors wants the Government to “clear the path” for investment by docking business rates bills when firms refurbish, expand or relocate premises, including shops.

It said that a rates “holiday” of that ilk would “provide a vital uplift” to the economy as Britain leaves the EU.

In a submission to the Chancellor, it said: “Businesses should not be discouraged from investing in or growing their organisations.”

The CBI further ratcheted up the pressure on the Chancellor to reform a business rates system that is claimed “puts many parts of the UK economy at a competitive disadvantage”.

It called for a “comprehensive review” that would ultimately “reduce the bill on individual businesses”.

The CBI said that the move would “incentivise investment by firms across the UK”.

Their calls come at a time when the Government is coming under increasing pressure to overhaul the business rates system, which rakes in around £30bn every year.

The likes of Tesco boss Dave Lewis, Sainsbury’s supremo Mike Coupe and Mike Ashley’s Frasers Group have all piled pressure on the Government to launch a review of how business rates bills are calculated.

The latter warned that “we will no doubt, unfortunately, see further large retail failures in the new year” unless such reform is carried out.

CBI director-general Dame Carolyn Fairbairn said: “At the start of this new decade, firms are feeling more optimistic and want to invest. This historic Budget offers the chance to turn rising optimism into a surge in investment across the UK.

“Backed by a pro-enterprise Budget for skills, infrastructure and innovation, business can help kickstart a new decade of UK growth and job creation.

“And it is investment that will enable all regions of the UK to share in rising prosperity. It will put the UK on track to lead the world in innovation, clean growth and the industries of the future, from AI and robotics to agri-tech and life sciences.”