Business rates: out of kilter with digital business

 The £25bn raised in annual business rates is going to be protected by government whatever happens but it needs to be reformed as business evolves, says Mark Cawthron 

Post-Budget, the business rates story has been knocked off the front page by the national insurance increases for the self-employed, a measure which was quickly dropped following an outcry.

But in the run up to the Budget, there was considerable sparring between government and ‘business’. The government emphasised that under the forthcoming April 2017 revaluation ‘nearly three-quarters of businesses will see no change or a fall in their bills from 1 April 2017’, and that for ‘the small minority of businesses’ who face an increase in their bills, any rise would be capped at 5% in the first year for small properties.

Business has been active in publicising examples of companies facing a doubling, or worse, in their rates bills – an effective penalty for being part of, indeed for actively contributing to, the success of a particular High street, or other business district.

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