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September 19, 2014

Businesses unite to call for rate reform

Businesses unite to call for rate reformMore than 100 businesses and business groups have joined the British Retail Consortium (BRC) to call for a fundamental reform of the business rates system.

One hundred and seven organisations from the manufacturing, services, property, leisure, hospitality and retail sectors have signed an open letter addressed to the three main political parties calling for a fundamental review of the business rates system before the 2015 general election.

The letter appeared as a full-page advert in The Daily Telegraph this week. It described the business rates system as “no longer fit for purpose for the 21st century” and said it has led to punitive rates that are higher than any other property tax in Europe and one of the highest in the OECD. Revamped business rates, it said, would unleash investment and create jobs.

In March of this year, a report produced by the Department for Business, Innovation and Skills (BIS) concluded that business rates are “the biggest obstacle to new retail businesses starting up”. MP Adrian Bailey said: “Business rates, in their current form, are not fit for purpose. The government needs to carry out a wholesale review of the current business rate system.”

The coalition of signatories, coordinated by the British Retail Consortium, includes FTSE 100 companies as well as small businesses. The Federation of Small Businesses (FSB), the Forum of Private Business (FPB) and the British Chambers of Commerce (BCC) have signed the letter alongside big retailers including the John Lewis Partnership, M&S, Asda, B&Q and Costa.

Helen Dickinson, BRC director general, said: “The sheer breadth of industries represented shows the strength of our collective belief that the existing system is no longer fit for purpose and that we will support the work of a future government to carry out reforms so that we can all play our part in growing the UK economy.”

Businesses can sign up to the campaign on the BRC website.

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