Member Article

Radical review of outdated English business rates launched

A “radical review” of English business rates has been launched, which will seek to bring about equality between digital companies and businesses struck by the annual property tax.

The review, which is reportedly due in time for the 2016 budget, is set to significantly change the way the current system, launched in 1988, works. With the consensus that the current system is outdated, the review was first announced back in December’s Autumn Statement.

Launching the review, Chief Secretary to the Treasury Danny Alexander said: “Our system of business rates was created nearly 30 years ago.

“Since that time, the worlds of commerce and industry have changed beyond recognition. I’ve been impressed by the representations made by the business community and I know that business rates are a considerable cost.

“This government has taken measures to help businesses by capping rates and introducing reliefs for smaller businesses.

“But now the time has come for a radical review of this important tax. We want to ensure the business rates system is fair, efficient and effective.”