Business rates overhaul looms for ‘stuck’ economy

Chancellor Rachel Reeves has voiced concerns that the UK economy feels “stuck” as the Treasury unveils plans to overhaul business rates, including measures to eliminate “cliff edges” for small firms.

- HENRY SAKER-CLARK

The government is examining changes to the current system of business rates - the tax levied on commercial properties - as part of a broader drive to reduce bureaucracy and stimulate economic growth.

An initial report from the Treasury indicates a focus on reforming small business rates relief rules, which are currently seen as a disincentive to expansion and investment.

Under the existing framework, companies opening a second property often lose access to all small business rates relief unless they meet specific, narrow criteria.

This review comes amid increasing pressure from businesses and industry groups for a comprehensive reform of the system.

High-street retail leaders, including those from John Lewis, reportedly met with Ms Reeves last week to advocate for a significant shakeup.