Retailers welcome news of potential 2% cap on business rates
Reports suggesting that the Chancellor may announce in his Autumn Statment today that business rate rises will be limited to 2% in England and Wales next year have been welcomed by retailers.
If the cap is introduced, it will be instead of the 3.2% rise that was due if no cap was put in place.
The British Retail Consortium has welcomed the news as a “good first step” towards full reform of the business rates in the future.
BRC director general Helen Dickinson said: “The BRC has been campaigning for a cap on business rates of 2% followed by reform of the system. If the reports this morning are correct and the autumn statement does include this cap it will be welcomed enthusiastically by retailers across the country. It could save 7,500 jobs next year, boost local communities and allow more shops to stay open on our high streets.”
Never Miss a Retail Update!Dickinson said that reform was still needed in the the longer term, adding: “The business rates system is not fit for purpose and has become the highest business property tax in Europe.”
The BRC is currently leading an examination of options for improving the business rates system, supported by a broad group of industry stakeholders.
