Business rate reform called for as industry reacts to landslide Labour election win
Posted on in Business News , Political News
Following Labour’s general election win, the retail industry has stressed the need for a business rates overhaul to protect high streets across the country.
During Labour’s campaign, the party pledged to replace the business rate system in England; introduce a specific offence for assaults against shop workers; and reform the “broken” apprenticeship levy.
Scott Parsons, chief operating officer UK, at Unibail-Rodamco-Westfield, said:
“When it comes to the retail sector, we have two top asks for the new Labour government. The first is to do what no previous government has been able to achieve and reform business rates once and for all, and the second is to abolish tourist tax. “Tackling these issues effectively will not only help save our high streets but it will also unlock growth across the UK, allowing us to better compete on the global stage.”
Jacqui Baker, head of retail at business advisory firm RSM UK, commented:
“While Labour have vowed to scrap the current business rates system, retailers are nervously awaiting the details on how the system will work in practice. As the biggest burden for the sector, retailers are banking on an effective overhaul that makes it fit for purpose once and for all.
“Labour’s vow to clampdown on anti-social behaviour against shop workers will go some way in providing reassurance to staff that they can feel safe at work. Crime is a growing and devastating issue in the sector, so strong measures that deter criminals and make a real difference are urgently needed.”
John Webber, head of business rates at investment management company Colliers, added: “Given the size of the landslide victory, there should be no excuse for the Labour party to avoid addressing the business rates problem or to introduce significant reform, which will help protect the high street. We urge reform, as opposed to abolition, to ensure local authorities continue to receive the stable funding they need.
“After more than 30 years of mismanagement from successive governments, we now have a multiplier which at over 50p in the pound, means a 50% tax on property occupation, a complicated relief system with business rates deserts in some parts of the country and an appeal system that’s inefficient, lacking transparency and increasingly difficult for businesses to negotiate without an adviser. The current system is just not fit for purpose.”
Commenting on the Election result, British Retail Consortium chief executive Helen Dickinson said:
“The country has made its decision, and we now look forward to getting down to business with the new government. Retail is an important source of employment and investment in every part of the country, and through its scale and reach can make a big contribution to Labour’s policy goals. Finding ways to unlock this contribution over the next five years should be a shared endeavour between the new government and the retail industry.
“Labour’s manifesto made some crucial commitments for retail, from reforming business rates, planning and the apprenticeship levy to introducing a specific offence for assaulting a retail worker, and we now await the details of how these will be taken forward.