DIYWEEK.net

The British Retail Consortium (BRC) today announced what it describes as "a range of ground-breaking ideas for the complete reform of the UK business rates system".
Outlined in a publication called The Road to Reform, it says the innovative options could ensure that customers continue to benefit from competition, provide positive incentives for retailers to invest in property, support the regeneration of the high street and create more jobs in the industry.

The suggestions, which prepare the ground for further discussion, have been put together by BRC members and Ernst&Young. They are:

1 Shifting the basis for taxing property by replacing the current system with a tax based on other measures, for example, energy usage;
2 Rewarding employment by delivering a discount to the business rates bill based on a given value per employee, capped at an overall proportion of company rates bill;
3 Supporting successful business by providing a discount to the business rates bill based on a percentage of corporation tax payment, capped at overall proportion of company rates bill; and
4 Modernising the existing system by introducing a simplified, banded revaluation system, with revaluations on a more regular basis.

The BRC, along with other business groups, has long argued that the current system of business rates creates disincentives for investment in property, and as a result the system is now levying a higher burden on a smaller number of businesses - a situation that is particularly acute for retailers. It says the rates system is woefully out of date.

Commenting on today's proposals, BRC director general Helen Dickinson said: "We have a once-in-a-generation chance to fundamentally change the business rates system and the time is right to think creatively and in the best long-term economic interests of the UK.

"These potential options would be good for the public, the economy and businesses small and large, while still providing significant tax revenues for the government. We now intend to analyse each one in more detail and very much hope that we will stimulate discussion that goes beyond tinkering with the existing system."