The NFRN has welcomed the Labour party’s announcement of proposed plans to scrap business rates if successful at next election.
This statement follows Shadow Chancellor Rachel Reeves announcement on Sunday stating the party will also cut all business rates if they are to successfully win the next election. Labour says business rates will be cut and eventually scrapped to be replaced with a new, fairer system of business taxation.
Labour said the policy would mean a freeze in business rates until the next revaluation and would be most beneficial to sectors like retail and hospitality and increase the threshold for small business rates relief that would give smaller companies a discount. This reform would also shift the burden of businesses rates to online giants, although this may affect members who have turned to online sales following the pandemic.
NFRN National President Stuart Reddish said: “Business rates are always a major issue for retailers, and the NFRN have been calling for an overhaul for years. “while many retailers currently benefit from business rate reliefs that mean they pay little or no business rates, the scrapping of business rates would give all retailers a greater degree of financial certainty. However, we would be concerned that the scrapping of business rates would be funded by raising other taxes and costs on retailers
“We welcome Labour’s announcement this, and we hope that this is something all Westminster MPs will consider.”
Speaking of the party’s decision to announce the proposals to scrap businesses rates, Rachel Reeves said “our high street businesses do so much to enrich our lives and our communities, facing high adversity in the past year. They are struggling right now, with a cliff-edge in rates relief coming up in March.
“The system we replace it with will incentivise investment, feature more frequent revelations, and instant reductions in bills where property values fall, reward businesses that move into empty premises, encourage, not penalise, green improvements to businesses, and no public services or local authorities will lose out from these changes”