95 out of 100 retail leaders believe that there needs to be a complete reform of business rates, according to a survey by the British Retail Consortium (BRC).<\/p>\n
Their views have been supported by the Government\u2019s business tsar \u2013 Sir Charlie Mayfield \u2013 because any cut to the tax would help to boost Britain\u2019s overall productivity.<\/p>\n
Sir Mayfield is chairman of the John Lewis Partnership and president of the British Retail Consortium (BRC), and he has publically agreed with high street business leaders that the cost of business rates is preventing the sector from achieving its full potential.<\/p>\n
Britain has a lower level of productivity \u2013 by around a fifth \u2013 when compared to the average rate of other economies in the G7.<\/p>\n
Almost \u00a328 billion is expected to be collected this year from the business rates tax, and it represents the sixth largest revenue stream for the UK Government, closely following income tax and national insurance.<\/p>\n
In the summer Budget, George Osborne stated that retailers would face a \u00a34.9 billion increase in business rates by 2020, meaning an increase of 17.5 per cent.<\/p>\n
First introduced in 1601, the tax is calculated according to rental values.<\/p>\n
However, Sir Mayfield said: \u201cBusiness rates bills have continued to rise when property values have fallen.<\/p>\n
\u201cRetailers are now paying \u00a32.40 in business rates for every \u00a31 in corporation tax.<\/p>\n
\u201cReforming the rates system would be a welcome boost for retailers and help drive investment in training and technology.\u201d<\/p>\n
A number of high profile industry leaders have criticised the tax for being outdated and unfit for purpose, with entrepreneur Theo Paphitis \u2013 who owns the Ryman Stationery chain \u2013 claiming that rates are more expensive for some of his shops than the rent.<\/p>\n","protected":false},"excerpt":{"rendered":"
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