UK move on retail taxes

With Dublin’s business rates system attracting widespread criticism in recent weeks, traders will be interested to learn that an influential group of MPs have concluded that the rates in the UK are not fit for purpose and need a complete overhaul.

Joining a chorus of critics, the MPs have called for the government review into the future of business rates to be extended to consider whether retail taxes should be based on sales rather than the rateable value of a property. The MPs want the review, set up by the government, to look at the merits of giving retail its own business taxation system rather than just considering the administration of business rates. They have also called for an interim 2 per cent cap on increases in business rates until the government delivers reform.

They also want the six month rates amnesty for business occupying empty properties to be more generous than the 50 per cent relief announced to encourage newcomers to depressed high streets.