Wednesday, August 12, 2020

Treasury Select Committee highly critical of Business Rates system

Parliament’s influential Treasury Select Committee has today published the findings of its inquiry into the Business Rates system.

Alison McGovern MP, the Treasury Committee’s lead member for this inquiry, said:

“It’s abundantly clear that the current Business Rates system is broken. The tax represents an increasing burden on businesses, particularly those with a physical high street presence struggling to remain competitive.

Odd reliefs here and there are nothing more than sticking plasters to a system in urgent need of reform.”

Having considered what alternative there is to the current system, McGovern continued,

“The Committee was presented with numerous alternatives to the current system, but none of them had been sufficiently modelled to examine who would be the winners and losers of any change. The Government must examine such alternatives in time for Spring Statement 2020.”

The Treasury Select Committee report references the Association of Accounting Technicians (AAT) strong support for annual revaluations and its demolition of arguments for a profits tax.

Phil Hall, Head of Public Affairs & Public Policy at AAT, told East Midlands Business Link: “Most businesses in the East Midlands will know that the country’s business rates system is not fit for purpose, so it’s no great surprise to see the Treasury Committee reach the same conclusion.

There has been much debate about scrapping business rates and replacing them with a sales tax; an energy tax, profits tax, turnover tax or land value tax. Some of these alternatives might be helpful to businesses in the East Midlands, others less so and some may be even worse than what we have already. That’s why AAT concluded the only long term solution is for a cross-party, consultative approach to agreeing a fairer, simpler alternative to business rates – something that this Treasury Select Committee publication could be an important first step in achieving.”

AAT has repeatedly stated that whilst a long term alternative solution was being sought, immediate steps could be taken to improve the current system.

These include, moving from three yearly to annual revaluations, removing plant and machinery from the business rates system and changing transitional relief to ensure that before the end of a rating list, businesses can complete the transition, upward or downward, to their correct rateable value. These issues are all positively addressed within the Treasury Select Committee report.

A message from the Editor:

Thank you for reading this story on our news site - please take a moment to read this important message:

As you know, our aim is to bring you, the reader, an editorially led news site and magazine but journalism costs money and we rely on advertising, print and digital revenues to help to support them.

With the Covid-19 lockdown having a major impact on our industry as a whole, the advertising revenues we normally receive, which helps us cover the cost of our journalists and this website, have been drastically affected.

As such we need your help. If you can support our news sites/magazines with either a small donation of even £1, or a subscription to our magazine, which costs just £33.60 per year, (inc p&P and mailed direct to your door) your generosity will help us weather the storm and continue in our quest to deliver quality journalism.

As a subscriber, you will have unlimited access to our web site and magazine. You'll also be offered VIP invitations to our events, preferential rates to all our awards and get access to exclusive newsletters and content.

Just click here to subscribe and in the meantime may I wish you the very best.






Latest news

Nottinghamshire housebuilder nominated for Building Excellence award

Rippon Homes’ Wellow Gardens development in Ollerton has been shortlisted for the East Midlands Local Authority Building Control (LABC) Building Excellence Awards 2020. The exclusive...

Derby video game payment platform secures further £200k

A Derby company which has developed a new payment system for the video games industry has secured a further £200,000 investment from the MEIF...

East Midlands Chamber comments on figures confirming UK is officially in a recession

The latest figures measuring the UK’s economic activity released by the Office for National Statistics (ONS) today confirmed the country is officially in a...

Sale at well-established Notts industrial park a ‘win-win’

Oriental food wholesaler Asiana has sold its warehouse HQ building at a well-established Nottingham industrial park for £2.2 million following a business restructure. The 38,000...

Nottingham Business School to help boost business resilient

Nottingham Business School (NBS) has launched a virtual challenge to enable organisations to become more resilient and benefit from the bright ideas of soon...

Related news

Northants HR firm launches new health, safety & environment division

A Northamptonshire based HR consultancy firm is launching a new Health, Safety and Environment division. HR Solutions operates in a variety of industries and has...

Nottinghamshire housebuilder nominated for Building Excellence award

Rippon Homes’ Wellow Gardens development in Ollerton has been shortlisted for the East Midlands Local Authority Building Control (LABC) Building Excellence Awards 2020. The exclusive...

Derby video game payment platform secures further £200k

A Derby company which has developed a new payment system for the video games industry has secured a further £200,000 investment from the MEIF...

East Midlands Chamber comments on figures confirming UK is officially in a recession

The latest figures measuring the UK’s economic activity released by the Office for National Statistics (ONS) today confirmed the country is officially in a...

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close