Business rates reform essential to retail future

Edward Cooke, director of policy and public affairs at BCSC, writes on the government’s decision to cap business rates in last week’s autumn statement After great celebrations last Wednesday night at the BCSC Annual Dinner, tired eyes were trained on the chancellor and his long awaited Autumn Statement on Thursday. Perhaps the relaxed atmosphere at the dinner was a reflection of the ‘leaked’ information analysed by the BBC – promising some action on business rates. Andrew Neil called the statement the most comprehensively leaked statement in memory but there were a few surprises in there, most of which were pleasant. With several days of anticipation it was great to see recognition of the problems BCSC members have been facing for some time, the Chancellor detailing the particular challenges within the retail industry. Perhaps he had read the Beyond Retail report we sent him! The Autumn Statement brought a welcome cap on business rates, something many influential figures inside the retail industry had called for. BCSC has long campaigned on behalf of our members for a reform of business rates, we are delighted to see this on the agenda of both Government and the opposition. Dialogue with parliamentarians has been regular and informative of late. The essential reform of business rates was highlighted along with other issues in the recently published Beyond Retail report. Our letter of recommendations sent to the Chancellor set business rates as a key issue which requires careful thought in the future. After listening to the Chancellor’s statement it is clear that the Government recognises the need for reform, but remains hesitant to act before 2017. Closer scrutiny of the business rates cap indicates the benefit to business is greater than first thought – I am not sure the Government has realised this yet! While the government caps RPI for this year – the intention being to bring one year’s relief – this will have a discounting effect on revaluation right up to 2017 as the sums are skewed from this year’s cap. But shhhh… Don’t tell George in case he changes his mind!”