Report Warns that Business Rates Reform Will Increase Costs for the Sector
According to a new report by Colliers, a leading real estate services and investment management company, the UK government’s proposed reforms to business rates are unlikely to succeed in providing relief to struggling businesses, including pubs. The report suggests that the government’s proposed changes do not go far enough to address the challenges facing businesses, particularly those in the hospitality sector.
The report warns that the proposed reforms, which include a switch to a capital value-based system and a reduction in the multiplier, will only benefit a small number of businesses, while many will continue to face high rates bills. The report argues that a more radical overhaul of the system is needed to provide real relief to businesses and stimulate economic growth.
The report suggests several alternatives to the current system, including a move to a land value tax or a turnover-based tax. These alternatives would be fairer and more effective at providing relief to struggling businesses, particularly those in the hospitality sector.
The report also calls on the government to provide more support to businesses, including pubs, that have been hit hard by the COVID-19 pandemic. This could include measures such as rent relief, grants, and tax breaks to help businesses recover and thrive.
Overall, the report highlights the urgent need for reform of the business rates system in the UK. The current system is outdated and unfair and is putting unnecessary pressure on businesses, particularly those in the hospitality sector. Urgent action is needed to provide relief to struggling businesses and support economic growth in the UK.
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