CBI and BRC call for urgent reforms to ‘broken’ business rates system

The CBI, along with 41 UK trade associations including the British Retail Consortium, has issued a statement claiming that action by the Chancellor at the next budget to reform the business rates system could unleash a wave of investment across key government priorities, including net zero and levelling up. 

This argues that, with up to 50% of business investment potentially subject to business rates, the current system “actively disincentivises business investment in decarbonisation and wider investments which can improve all important productivity, which is the only sustainable route to higher wages.”

Helen Dickinson, Chief Executive at the British Retail Consortium, comments: “Sky high business rates are closing stores up and down the country and preventing new ones from opening.”

“A recent BRC survey found that four in five retailers will be forced to close shops unless the rates burden falls following the government’s upcoming Fundamental Review.”

“Without change, the areas most in need of levelling will be hit hardest, and the government’s levelling up agenda will fail. The choice is clear – cut rates and boost investment and jobs, or leave them unchanged and see more shops closed and jobs lost.”

James Lowman, Association of Convenience Stores Chief Executive, says: “The business rates system acts as a brake on investment and growth, with local shops penalised for investing in improving their stores and expanding the range of essential services they provide within local communities.”

“We need a system that is fair, accounts for the changing nature of the economy and incentivises investments.”

Emma McClarkin, British Beer & Pub Association Chief Executive, states: “The BBPA supports CBI’s calls for reforms to the broken business rates system.”

“We agree that the current way of taxing our nation’s pubs and brewers is, as CBI concludes, uncompetitive, unproductive and unfair.”

“Our sector was overpaying by as much as £570 million before Covid and cannot afford to be shouldering this unfair burden any longer.”

“The pub acts as a community anchor and as we come out of lockdown, we need a business rates system that supports investment in our sector just as investment in our sector supports the community.”