Richard Rose, partner and head of BDO LLP in the West Midlands, comments on the Treasury’s review of business rates:
“Our pre-Budget poll of more than 1000 businesses revealed that half (49%) of mid-sized firms see business rates as their biggest problem, so the launch of the Treasury’s review into business rates is welcome. While it’s promising to see that the Treasury is open to considering a change in tax base and a possible move away from rateable values, the real challenge will lie in how any positive changes can be introduced to replace the current outmoded system and still preserve tax neutrality.
“There is likely to be a long period of review and consultation such that any benefits of change are unlikely to filter through until well into the next parliament. It will therefore be a watching brief for some time yet, which will offer little respite for mid-market retailers who continue to feel the pain of rates set in 2008, rateable values which take no account of the fall in property prices since the recession.”