The government is not going to announce, as expected, a reform of the business tariffs for small businesses in the household.
The reform of corporate tariffs has been “thrown into the grass,” according to the Daily Telegraph, and instead only small adjustments are announced after the October 27 budget.
This would be the fifth time the government has delayed its plans to reform corporate tariffs.
In March 2020, the government announced a new consultation, saying that the first part of the corporate tariff review would be published in late 2020 and the second part in early 2021.
Since then, there have been repeated pushbacks against the publication of the review.
Independent retailers trying to make things better on the high street complain they are being penalized by unfair business tariffs, while out-of-town retailers in larger retail parks pay less per square foot.
In addition, the internet retailers are relying on even cheaper distribution warehouses in the hinterland, which further lowers their costs.
However, Chancellor Rishi Sunak did not have enough time to think about the impact of a complete overhaul of business tariffs, the newspaper said. Minor changes in business rates are expected to be announced, but “wholesale reform” has been postponed to allow ministers and officials to investigate further.
A government source said that telegraph: “I think the expectations are pretty high and the reality is that we just didn’t have enough time to look at this. It’s obviously something to watch. Rishi is interested in properly reforming the entire system. “
The Chancellor believes that reforms are particularly necessary to address “the problem of retailers compared to online retailers,” the source emphasized.
At its convention, Labor promised to cut business fees in England for small businesses before they are completely abolished.
Further reading on corporate tariff reform
Business Rates Review 2021 – What To Expect Your Small Business