Government calls for evidence on business rates reform

The Government has called on businesses, business representative organisations and other interested parties to provide evidence for a fundamental reform of business rates.

Earlier today (21 July), the Treasury confirmed that the next revaluation of non-domestic property in England – previously scheduled for 1 April 2021 – will now take effect on 1 April 2023, and has called for evidence supporting a move to reform.

The objectives of the review include reducing the overall burden on businesses, improving the current rates system, and considering more fundamental changes in the medium and long term.

The Government has also recognised the need to reform the current duty system to support the pub sector long term, and will publish a call for evidence on this before the end of September 2020.

Commenting on the announcement, UK Hospitality CEO Kate Nicholls said: “We have pushed extremely hard to convince the Government to act on this, so it is great to finally see positive action.

“Kicking back the revaluation by a further year will give businesses some much-needed breathing room and stability. Pushing back should also provide time for reforms to be introduced and a more accurate reflection of property values following this crisis which has clearly had an enormous impact on trade.

“However, with rateable values therefore staying high for longer, the need for an extension of the business rates holiday is more acute. The holiday has been a hugely valuable lifeline for hospitality businesses and we need the Government to extend it for another year to give the sector the extra degree of flexibility it needs to get back on its feet.

“Even though venues have begun to reopen, the immediate future is still uncertain. Businesses are going to need all the support they can get if they are to survive the winter.”