{"id":134676,"date":"2023-10-20T16:59:25","date_gmt":"2023-10-20T16:59:25","guid":{"rendered":"https:\/\/fin2me.com\/?p=134676"},"modified":"2023-10-20T16:59:25","modified_gmt":"2023-10-20T16:59:25","slug":"jeremy-hunt-under-pressure-to-overhaul-business-rates","status":"publish","type":"post","link":"https:\/\/fin2me.com\/politics\/jeremy-hunt-under-pressure-to-overhaul-business-rates\/","title":{"rendered":"Jeremy Hunt under ‘pressure’ to overhaul business rates"},"content":{"rendered":"

<\/p>\n

The rallying cry comes as staggering new figures show that more than 17,000 shops were forced to shut in 2022.<\/p>\n

A devastating 150,000 jobs were lost because of the closures.<\/p>\n

Campaigners, MPs and Consumer groups warn that unless urgent reforms are made High Streets will continue to die.<\/p>\n

The Covid pandemic, cost of living crisis and the ongoing surge to online shopping have clobbered shops and hospitality businesses in recent years.<\/p>\n

Costly business rates have added to their woes.<\/p>\n

A new report from the TaxPayers\u2019 Alliance (TPA) spells out the need for \u201csimple but fundamental\u201d changes.<\/p>\n

It points out that the current system taxes not just the value of the land on which a commercial premises is located but also the value of the buildings and any other improvements made.<\/p>\n

The TPA argues that this, on top of VAT, represents a double-tax on commercial use property, and prompts landowners to shift property towards residential use.<\/p>\n

READ MORE: <\/strong> Jeremy Hunt’s \u2018stealth tax\u2019 hitting hard-working Britons’ savings and income<\/strong><\/p>\n

John O\u2019Connell, chief executive of the TaxPayers\u2019 Alliance, said: \u201cIt\u2019s clear that business rates reforms are long overdue.<\/p>\n

\u201cThe current system punishes businesses that bolster high streets and add value to their local areas.<\/p>\n

\u201cMinisters can give bricks and mortar enterprises a much needed boost by reforming rates to take the pressure off Britain\u2019s vital businesses and allow high streets to once again thrive.\u201d<\/p>\n

Philip Miller, executive chairman of Stockvale limited, said: \u201cWhether you are working hard at the commercial coalface or sitting in an academic ivory tower there is general agreement that the current business rates system is inherently unfair and a barrier to growth.\u201d<\/p>\n

The Hospitality industry warned that more pubs and restaurants will be forced to close unless drastic action is taken.
Morgan Schondelmeier of the British Beer and Pub Association, said: \u201cBusiness rates are a major outlay of pubs across the country.<\/p>\n

\u201cTheir urgent reform is needed to accurately reflect the value of and pressures faced by the pub industry.\u201d<\/p>\n

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<\/p>\n

Kate Nicholls, chief executive of UK Hospitality, said the industry needs a \u201clifeline\u201d from the chancellor in next month\u2019s Autumn statement.<\/p>\n

\u201cThe issue of business rates is key and it is a tax on occupiers and is based on the turnover in hospitality so we are disproportionately hit as we occupy more prime town centre sites with higher rents but turnover doesn’t equate to ability to pay,\u201d she said.<\/p>\n

\u201cWe represent five per cent of GDP but pay 15 per cent of all rates and it is an ever increasing burden as it increases by inflation each year.<\/p>\n

\u201cWhile we agree it needs root and branch reform to reflect modern high streets and out of town retail centres , what we need in the Autumn Statement is a short sharp tactical intervention to prevent many more hospitality businesses closing for good.<\/p>\n

\u201cWe urge the Chancellor to once again freeze the multiplier and extend reliefs to give hospitality a lifeline\u201d.<\/p>\n

Business rates are due to be recalculated in April using the government\u2019s multiplier, which is typically pegged to September\u2019s rate of consumer price inflation (CPI).<\/p>\n

With CPI confirmed this week at 6.7 per cent, analysts forecast that the tax will rise from \u00a326 billion in 2023-24 to \u00a327.7 billion in the next financial year.<\/p>\n