The ALMR has welcomed the publication of the Business, Innovation and Skills Committee’s report, into the retail sector which calls for a fundamental reform of business rates.
The report by the Committee follows prolonged and robust campaigning for a wholesale review of business rates to create a fairer deal for pubs, restaurants and bars.
Fundamental review
The BIS Committee report calls for a fundamental review that goes beyond the administration of rates, calls for a six month amnesty for businesses occupying empty properties, and recommends annual increases be linked to a 12 month average of either RPI or CPI with a 2% cap – something which the ALMR had specifically requested in its submission to the committee.
Commenting on the report, ALMR Strategic Affairs Director, Kate Nicholls said: “We are pleased that the committee has recognised not only the immense value that hospitality and the high street provides to the UK, but also the disproportionate burden being faced by businesses.
“It is of particular concern for our members who currently pay an estimated 15 pence per pint in business rates compared to major supermarket chains who pay an estimated 1-1 ½ pence per pint.
“The ALMR has consistently been vocal on the subject of business rates reform and we are pleased that our recommendation, to review rates increases annually linked to CPI, has been noted by the committee. The current system, using a monthly snapshot of RPI, serves only to create uncertainty and acts as a brake to investment.”
Kate Nicholls concluded: “The recommendations put forward by the Committee identify the good work being done by licensed retailers in our towns and cities and the need for a varied and competitive hospitality sector. It is also encouraging to see the report identify the good ideas and the successful local partnership being fostered by Portas Pilots. We look forward to continuing this work as they begin to deliver positive results.
“A fairer deal on business rates will allow the sector to continue providing that variety and competitiveness and encourage business to grow.”