Business rates too high and too confusing say Greater Birmingham firms

BUSINESS rates are too high and too confusing businesses in the Greater Birmingham area have said.

In a survey and focus group run by the Greater Birmingham Chambers of Commerce (GBCC), members said the current business rates system places property intensive businesses at a competitive disadvantage.  

Retailers are actively encouraged to abandon physical premises on high streets to run their businesses exclusively online, it suggests.

Jerry Blackett, chief executive of GBCC, said:  “Business rates are a growing bone of contention.  As a tax on inputs rather than profits, business rates do not respond to changes in economic circumstances yet they represent a significant amount of taxes collected by Government.”

Companies also commented that the system was unnecessarily complicated, particularly for businesses looking to apply for rates relief or, in some cases, even understand their bill.
 
“Our members tell us that there is a pressing need to return to regular revaluations as the current system of business rates is having a negative impact on economic growth,” added Blackett.

He said chamber members felt that the Government’s decision to postpone business rates revaluations to 2017 was especially unfair.

“Businesses are currently paying 2008 rates valuations for properties whose rental value has changed significantly in this time. Companies in central London where rental values have risen dramatically are paying below the going rate for their properties, where many in the Midlands and the North face unfairly high bills,” said Blackett.  

In its response to the Government’s Administration of Business Rates in England Discussion Paper, the GBCC has called for a return to regular revaluations and a move to a three yearly cycle to ensure rates bills closely reflect the rental value of business premises.

“We are also calling for greater consistency, clarity and transparency in the administration of business rates reliefs.  We would like to see more readily available information on how to calculate your business rates.

“There is a need to review the system urgently and respond to business criticisms so that we can get back to growing the economy,” said Blackett.