The Chancellor revealed plans that she is considering business rates reforms as parts of efforts to cut red tape and improve growth.
Comment from Mark Tan, Tax Partner at law firm Spencer West LLP:
“Business rates are often described as one of the most burdensome taxes for small firms, so a review is long overdue. The way relief is withdrawn at a cliff-edge; for example, when a small business opens a second shop or office can mean an overnight jump in costs that discourages expansion. Looking at ways to smooth this is a welcome step, but it’s not yet clear whether the reforms will genuinely remove that barrier or just make a modest tweak.
If relief is tapered, some firms will gain, but others (such as those currently paying nothing) could start facing bills for the first time. And even if cliff-edges are fixed, high street businesses will still face heavier costs than online rivals with little physical presence.
That said, it is encouraging to see the Treasury take this seriously. If the review can deliver a fairer and more predictable system, it would give small businesses greater confidence to grow, and that’s exactly what the economy needs.”
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