Neil is continuing his work in Wallingford (South Oxon) to encourage new business and add diversity to the town's retail provision.
Business group calls for business rates reform to be 'top priority' at 2016 Budget
The Confederation of British Industry (CBI) has urged the Government to reform the current business rates system, amid concerns that it is 'outdated' and 'undermines' both retailers and manufacturers.
In a new briefing released ahead of the Chancellor's Budget, the CBI warns that the existing model is unable to cater for any changes in the UK's economic circumstances. The lobby group also claims that the existing business rates system is increasing taxes for UK firms.
According to the CBI, over the last seven years the rate of tax revenue growth from business rates has risen by 28%, far exceeding other types of tax and growing at a quicker rate than the Government's overall tax take. With the Government due to report back on its business rates review in March, the CBI has set out its recommendations for a 'simpler, fairer and more competitive' system. It argues that business rates could be made simpler by removing firms with a 'rateable' property value of less than £12,000 from the system completely, while carrying out more regular valuations would help to make the system fairer.
In addition, the CBI suggests that moving from RPI to CPI indexation for annual increases will result in 'a more stable business rates multiplier'. Commenting on the organisation's proposal, CBI Economics Director, Rain Newton-Smith, stated: 'The current business rates system is from another era and proving an ever-increasing problem for firms, hitting our high streets and manufacturers across the country. And devolving business rates does not tackle the significant problems that this distortive tax is causing for businesses. 'The Government cannot put business rates reform off forever, and we want to see urgent action taken at the Budget. Business wants to see the smallest firms completely removed from the system, more frequent valuations and ensure the system is tied to the Consumer Price Index to make it fairer and more competitive.'
In the 2015 Autumn Statement, the Chancellor revealed plans to allow local government to keep the rates they collect from business, and to give councils the power to cut business rates to boost growth. Osborne also outlined proposals to give elected city-wide mayors the power to levy a business rates premium for local infrastructure projects, provided they have the support of the local business community. Furthermore, in its Budget 2016 submission the CBI revealed that new measures such as the National Living Wage and the Apprenticeship Levy could potentially result in a £9 billion-a-year burden for businesses by the year 2020. The group is calling on the Chancellor not to further increase the 'cumulative burden' and to support investment and innovation by increasing the scope of capital allowances and broadening access to research and development.
The Chancellor will present the 2016 Budget on Wednesday 16 March.
