Outdated, unfair business rates have once again been flagged up in a report published last week (February 21) by the House of Commons’ Housing, Communities and Local Government committee, with the British Independent Retailers Association (Bira) responding positively to the findings.
Bira’s ceo, Andrew Goodacre says that the Committee’s report into the future of high streets and town centres, will come as welcome news to independent retailers. With recommendations for rates reform, based on the suggestions put forward by Bira, and increased investment in town centres, the association says that business owners will be comforted to know that retail is still prominent in the vision for the future.
Andrew, who took part in the inquiry alongside member Martin Foster of independent business Lakeland Leather, comments: “We broadly agree with the findings and recommendations set out in the report. It is clear that high streets and town centres will change, and many stakeholders have an important role to play. It requires vision and leadership at a local government level, with funding from central government.”
He continued: “Furthermore, we are pleased to see it being recognised that independent retail businesses will be crucial in providing the diversity and quality retail experience demanded by the consumers. Our members should feel encouraged by this. It is important for MPs to realise that high streets are not just about the major chains and that independents do and will continue to play a key role.”
While no clear solution is given on how business rates can be reformed, the Committee refers to them as ‘increasingly outdated and far from ideal,’ recommending that Bira’s suggestion for an allowance, similar to an income tax allowance, be considered to lessen the complexity and administrative burden of rates reliefs.
Andrew adds: “We are really pleased that the report makes direct reference to Bira’s proposal of introducing a rates allowance, something we passionately believe will support independent retail businesses. We are continuing our campaign on rates and will be responding to the new inquiry looking specifically at rates reform.”
Bira also welcomed the suggestion by the Committee to use funds generated by any new taxation of online businesses to reduce business rates for bricks and mortar retailers, as well as a 12-month rates holiday for those retailers who have seen an increase in their rates following investment in their properties. Both recommendations support Bira’s ongoing campaign to level the playing field between online and bricks and mortar retail.
Among other retail organisations responding to the report was the British Retail Consortium, whose chief executive Helen Dickinson OBE, stated: “The Select Committee are spot on when they say, ‘retailers are paying more than their fair share of tax’. In fact, retail accounts for 5% of the economy, pays 10% of all business tax and shoulders 25% of the UK’s business rates bill. This damaging and outdated business rates system, which drives up the cost of doing business, is a major factor in store closures as well as hindering the successful transformation of our high streets.”
She continued: “We welcome the Committee’s recommendations to mitigate the business rates burden through lower rates or investment relief. However, such relief must not result in increased costs to other retail activities. Many well-known brands disappeared from our high street last year. Without a full and urgent review of business rates and business taxes, the government is sleepwalking into the demise of many of our local communities up and down the country. Failure to act by Government will have devastating consequences for local communities and consumers.”
Top: The future of the high street has once again been debated by a new select committee report, which came out last week.
