BRC urges UK chancellor of the exchequer to cut business rates burden

The association also urged Sunak to stand by his party’s manifesto commitment to “cut the burden of tax on business by reducing business rates” through its Fundamental Review, which is due to conclude in Autumn.

Business rates have contributed to the loss of shops and retail jobs for years but the need for decisive action has never been greater, BRC said in a press release.

The BRC’s Budget submission highlights the need for immediate action to tackle the cost burden of rates on retail and sets out further actions to improve the efficiency of the business rates system. There are three key recommendations to the government:

The Fundamental Review must result in a long-term substantial reduction of the £8-billion annual rates tax burden on retailers and the ending of downwards phasing of transitional relief, which cost retailers over £500 million between 2017 and 2020.

The association demanded removal of the requirement for rates to raise a fixed sum, allowing it to flex in line with economic circumstances as all other taxes do and introduction a one-year ‘bridging relief’ of at least 30 per cent for retail for 2022-23 to account for the reduction in retail rents since 2015.

ALCHEMPro News Desk (DS)