Businesses in the UK could soon see their taxes cut as a business rates review for England has been launched. The review is set to investigate how to change the system which is claimed to be ‘crippling’ small businesses.
Currently the rates are charged to retailers based on the value of their shop or commercial property.This means companies with similar turnovers could be paying drastically different rates due to their properties being valued less.
The review will look at the way businesses use property, what the UK can learn from the way other countries charge business rates, and how the system can be changed to suit the changes in the value of property.
According to the BBC, the rates paid by English businesses are the highest of any EU country, meaning they can be a company’s biggest expense.
The business rates system has been blamed for the demise of the high street, leaving a vast amount of vacant shops. The rates have been deemed unfair as they restrict some small businesses from being able to compete with online competitors who pay smaller business rates.
Is your business affected by business rates? Do you feel that a reform will improve the way the business rates are done? We hope the new business rate system helps the small businesses out there and helps keep the high street alive. Want to read more business news? Take a look at our business news blogs.