Business rates review plans welcomed

They say that the move could make the controversial charge on businesses fairer.

Business rates are based on the size and location of premises which means that similarly sized companies can pay vastly different amounts.

Now Barnsley and Rotherham Chamber of Commerce has said a review is needed.

But it is concerned that any changes will be “fiscally neutral” — which means the amount received overall by the government will be the same so that some businesses will end up paying more if others pay less.

Andrew Denniff, chief executive of the Barnsley and Rotherham Chamber of Commerce, said: “It is good to see that the government is looking at a wide-ranging review of business rates.

“As we have said on many occasions previously, this is a tax on small businesses before they have even made a profit.

“The government is asking a lot of important questions in this review — for business however, actions speak louder than words.

“Unless a full and robust reform of business rates is delivered at next year’s Budget, business will regard this as a missed opportunity to tackle a huge brake on investment and growth.”

John Cridland, director-general of the Confederation of British Industry, has called the current business rates system “outmoded, clunky and regressive”.

Earlier this week, Danny Alexander, chief secretary to the Treasury, said: “The time has come for a radical review of this important tax. We want to ensure the business rates system is fair, efficient and effective.”

Business rates in England are the highest in the European Union and have been criticised for discouraging investment.