Business rates have become a barrier to entrepreneurship,
investment and productivity growth for businesses of all
sizes and needs urgent reform.
The CBI's latest policy briefing sets out the CBI’s immediate recommendations for how the government can create a simpler, fairer and more competitive business rates system.
- Simpler: removing businesses with a ‘rateable’ commercial property value of less than £12,000 from the system altogether
- Fairer: more frequent valuations of commercial property
values, which are implemented with a shorter time lag
- More competitive: addressing the loss of tax competitiveness from the unsustainable rate of increases in the business rates ‘multiplier’ (tax rate), by moving from RPI to CPI indexation – in line with the government’s official inflation target.
The CBI also called for a more fundamental reform of the business rates system in the longer term:
- Use modern technology to deliver an online
one-stop shop for the billing and payment of business rates
- Allow business rates to be based on annual property valuations.
- Business investment and productivity improvements could be unlocked by allowing new investments in plant, machinery and energy efficiency assets to be excluded from rateable values for business