Industry experts have expressed their disappointment that Rachel Reeves did not make any announcements on the much vaunted business rates reform.
Following on from Reeves’ first budget last autumn the government firmly expressed its commitment to reforming business rates, followed by a discussion paper on its priorities. Further policy detail is due to come out in the next Budget in the autumn – almost 16 months after the new Government came to power.
Industry leaders are now becoming increasingly impatient with progress after minimal business rate reforms were passed by previous Tory governments, despite numerous reviews and declarations.
Vivienne King, chair of the Shopkeepers Campaign said it was “regrettable” that the Government has stuck to its decision to reduce and then scrap the Treasury’s support for retail through [retail, hospitality and leisure] business rates relief, worth £1.3 billion this year.
She added: “This amounts to a stealth tax on all commercial occupiers of retail property. Together with rises in National Insurance it will reduce investment and damage jobs in the retail, hospitality and leisure sectors.
“The government needs to stop treating retail like a cash cow and recognise that shops and town centres are a vital part of community life. The government should reverse this damaging spending cut as soon as possible to avoid further closures on the high street.”
Theo Chatha, CFO at Bibby Financial Services, described the statement as “a huge disappointment” for small and medium-sized enterprises. He highlighted that the lack of SME-specific support, combined with rising business rates and National Insurance contributions, marked this as “a missed opportunity”.
The National Farmers Union (NFU) president Tom Bradshaw expressed concern about the lack of support for farmers, stating that the policies announced since Labour’s election have been a blow to farmers’ and growers’ confidence. While not specifically mentioning business rates, his comments suggest disappointment in the lack of targeted support for the agricultural sector.
And Julian Mulhare, Managing Director, EMEA at Searce, while welcoming the Government’s commitment to digital transformation, warned that the statement did not address deep-rooted inefficiencies in organisations.
Overall, business leaders seem to view the Spring Statement as a missed opportunity to provide relief or reforms related to business rates, with many expressing concern about rising costs and lack of specific support for various sectors.