The Chancellor Philip Hammond has pledged today to reform the business rates system ahead of the next revaluation of the tax in 2022. In response, Andrew Carter, Deputy Chief Executive of Centre for Cities, said:
“The Chancellor is right to recognise the need to reform the business rates system, but we don’t need to wait five years to make the change that is most needed, which is to introduce more frequent revaluations of the tax. Doing so would make business rates more accurate and timely, and would also reduce volatility in the system which is resulting in some firms facing dramatic increases in their rates next month.
“The Chancellor’s promise to introduce more gradual rates changes could also be a double-edged sword for businesses across the country. While it will help firms in places like London which were facing the biggest increases in rates, it will also mean smaller decreases for businesses in less prosperous parts of the country, which have been overcharged in recent years and could now miss out on the big rates cuts they were expecting.”
