Delay to business rates reform dismays retailers

The Association of Convenience Stores (ACS) has again called on the government to make reform of business rates a priority after government sources told the Daily Telegraph that “we just haven’t had enough time to look at it”.

ACS chief executive James Lowman said: “Business rates reform has been being talked about for several years now, but so far we’ve only seen minor tweaks to the existing system.

“We need bold change to support businesses in their recovery from the pandemic that helps them to invest and takes account of the inherent advantages that online stores have over their bricks-and-mortar counterparts.

“As rates bills start to land on businesses’ doorsteps again in the coming months, retailers will be frustrated that the government has decided to once again push back meaningful reform.”

The ACS wants the government to exclude all retailers whose premises are under £51,000 in rateable value from having to pay rates, to introduce an online sales levy to support bricks-and-mortar retailers, and to incentivise investment with a business growth accelerator.

Property specialists also expressed disappointment at the government’s briefings to dampen expectations of imminent reform.

John Webber, head of business rates at Colliers, said: “Reports that the government will not be announcing any major overhaul of the business rates system in the forthcoming budget are massively disappointing.

“It is frustrating that 18 months into a consultation which has already been delayed four times in the last year, the government is still not ready to respond to industry calls for proper reform.

“Delayed action will be a further hit to businesses – it will cost jobs and will do nothing to save the high street.”