Sticking-plaster rate reforms are taxing firms out of existence

BRITAIN’S pubs may have been thrown a last-minute tax lifeline, but the government's bailout is little more than a sticking plaster on a system that is fundamentally broken.

- Ros Morgan

Rachel Reeves has offered a partial lifeline to pubs but ignored other businesses

The U-turn on planned business rate hikes for pubs is welcome. Many are under pressure from every direction — rising wages, soaring energy bills and higher National Insurance costs — and any relief is better than none.

But this fix is temporary, partial and deeply unfair. It helps one sector while leaving countless others exposed. And it avoids the real issue: Britain’s business rates system no longer reflects its modern economy.

Before the last election, Labour promised to level the playing field between bricks-and-mortar businesses, which bear the brunt of the existing business rates system, and online firms, which get away with paying little or nothing.

But instead of embracing real reform, the Chancellor tweaked the existing system. As a result, and as part of a revaluation of property values, many high street firms are now discovering rates bills are about to explode.

Retail, hospitality, leisure and culture face rises of 15 to 30% a year for several years running.