Today, George Osborne has confirmed that the Government will conduct a structural review of Business Rates in the UK.
The Chancellor announced the review as part of the Autumn Statement, alongside the doubling of Small Business Rate Relief for the second year in a row and a commitment to cap inflation-linked increases of Business Rates at 2%.
However, the review of Business Rates has been the most widely welcomed announcement. Jennifer Brooke, Business Centre Association (BCA) Executive Director, has said: “We are thankful that the Government has listened to the concerns of the industry and has pledged to undertake a root and branch review of the Business Rates system.”
“The BCA have been at the forefront of this issue, engaging with the Government to bring Business Rates in line with market conditions, and it is refreshing to now see a response. Basing a property tax on outdated valuations is simply unjust and inefficient while the technology is available to achieve more frequent valuations than the current 5-yearly cycle.”
“We at the BCA are confident that a structural review will highlight these issues, whilst we will continue to work with the Government to promote the benefits of an equitable Business Rates policy for our members.”
The Chancellor’s announcement has also been welcomed by the British Property Federation (BPF) and the British Council for Shopping Centres, who have committed to engage with the process.
The Government has promised that the review will be “fiscally neutral and consistent with the Government’s agreed financing of local authorities.”
The Treasury is due to announce how it “will respond to business’ calls for clearer billing, better information sharing and a more efficient appeal system” when it publishes the interim findings of the Business Rates Administration Review later this month.
The Office for Budget Responsibility has published new forecasts for the economy and the public finances, taking into account Autumn Statement policy measures.
Executive summary and Overview: http://bit.ly/1yOeeFP
Full economic and fiscal outlook: http://bit.ly/11TDwpv
Related documents published by HM Treasury can be found here:
Impact on households: distributional analysis to accompany Autumn Statement 2014:http://bit.ly/1vNdezM
Autumn Statement 2014 policy costings: http://bit.ly/11TCqtR
Autumn Statement 2014 data sources: http://bit.ly/1vmuvB6
A number of supporting documents also published can be found here:
Stamp duty factsheet: http://bit.ly/11TDhdQ
Taxes and benefits: rates and thresholds: http://bit.ly/1rTbTJv
National Infrastructure Plan 2014: http://b