Business rates

I have been lobbying the government along with other MPs to do more to alleviate high business rate increases hitting some firms inĀ our areas under the revaluation proposals. The government has offered substantial rate relief to many small businesses, but there remain numerous businesses that will experience rises in their rates bills at a time when they can ill afford the extra money.

Today the Communities and Local Government Secretary announced that he is working on a scheme with the Chancellor to offer more help, which will be welcome.

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4 Comments

  1. Narrow Shoulders
    Posted February 23, 2017 at 8:00 am | Permalink

    Better to scrap business rates and introduce a turnover tax (small).

    That will protect small businesses while catching multi – nationals and out of town retailers. The consumer will end up paying but we already do through business rates.

    A turnover tax ratcheted at well thought out thresholds may also address certain multi – nationals avoiding corporation tax.

  2. alan jutson
    Posted February 23, 2017 at 8:08 am | Permalink

    I too hope that the proposed new measures will help in some way.

    But surely it would have been more sensible to have designed the whole scheme in a more simple and sensible manner in the first place, rather than having to make so called adjustments and reliefs available (which some people may even not be aware of) before it even comes into operation..

    Seems to me the best solution would be to scrap the whole idea of business rates and substitute it for a small rise in VAT which would be Government income neutral, and business cost neutral, hence prices in the shops remain the same, because business costs would have come down by the same amount of VAT rising.

    The alternative is perhaps to lower VAT, scrap business rates and have a local sales tax, Local Authorities would then have an incentive to encourage local business etc.

    Business rates based on property values seems like a crude method/system of taxation.

    Likewise Council tax on residential properties.

  3. Antisthenes
    Posted February 23, 2017 at 10:40 am | Permalink

    You are championing another cause to enter an already overflowing to capacity ring of good intentions. Everyone of them has a cost associated with it and will involve a demand that government should do something and mostly increases the need for more taxes. Surely it must be obvious by now that all these causes and demands are causing problems that are spiralling out of control. Satisfying everybody’s needs has now become the major growth industry of government. A vocation for which it is badly suited.

    The result of which is an organisation the government that is not staffed with individuals who have any incentive to provide and fund individual needs responsibly. Who also lack the knowledge only markets can obtain to match supply with demand. Mix that with having to cope with social justice demands that bear no relation to economic reality then you have a system that is inefficient, wasteful and has an insatiable appetite for taxpayers money. If government had not got into this business and left it where it belongs with the individual and the market place then you would not now be asking for help for businesses because taxes would be priced much lower.

  4. libertarian
    Posted February 25, 2017 at 9:49 am | Permalink

    Dear JR, Conservative Party & Government

    Please dont offer us “more help” just scrap the damn rates increase its a killer and it will derail all your growth plans .

    ( It will damage the public sector too of course as more of their budget will be sent straight back to where it came from, this is now at insanity levels)

    Thanks

    much love
    5.1 million small businesses who actually make the country work

  • About John Redwood


    John Redwood won a free place at Kent College, Canterbury, and graduated from Magdalen College Oxford. He is a Distinguished fellow of All Souls, Oxford. A businessman by background, he has set up an investment management business, was both executive and non executive chairman of a quoted industrial PLC, and chaired a manufacturing company with factories in Birmingham, Chicago, India and China. He is the MP for Wokingham, first elected in 1987.

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