26 September 2021
Tony Danker, CBI Director-General, said:
“Change to this outdated system is chronically overdue. The Labour Party should be applauded for grasping the nettle and putting forward a pro-growth, pro-investment package of reforms that will reflect our green ambitions, spur the economic recovery,
and help level up our regions. The CBI is keen to explore further how such a move could be funded and will review the party’s wider tax reform proposals. Ensuring suggested reforms promote the UK as the best place to start and grow a business is critical.
“With businesses just recently starting to recoup their losses a freeze in rates will provide much needed breathing room, as will the rise in rates relief for SMEs. But going it alone on digital services tax is high risk and could undermine the UK's competitiveness at a time when need to be prioritising going for growth.
“More than half of business investment is subject to business rates; this unfair, uncompetitive system has become a tax on investment that simply isn’t fit for purpose. Firms will be expecting to see the Government’s ongoing review address of some these structural issues at the Budget in October.”