Business rate changes labelled 'unhelpful'

Speaking at the Conservative party conference, Osborne described the changes as ‘the biggest transfer of power to local government’ in recent history and said it would stop councils having to beg for money from the government.

However, the Association of Licensed Multiple Retailers has warned that the devolution of business rates could be unhelpful unless there are careful checks and balances.

Chief executive Kate Nicholls said:  “The Government’s decision to devolve power over business rates to local authorities is designed to boost the UK’s high streets but it could have unwelcome consequences for licensed hospitality businesses.

“Local authorities do not have a good track record applying discretionary rates or supporting businesses in their areas. Any changes that are made by the local authority should be done so in order to boost investment at a local level and increase accountability to local businesses. There is some concern that any concessions that are made will be given solely to big ticket investment or high tech, rather than the bulk of small and medium-sized enterprises.

At present we have not been given any details of caps, checks, balances or challenges for businesses. We are hopeful that this development will incentivise business, but we will remain wary until we receive further details of the proposal.”

According to the BBPA, pubs are paying an annual tax bill that is £500m above what they should be paying. Licensees have argued that lower business rates would do wonders for the trade.

George and Dragon licensee Martin Barnes told the PMA​: “We’re a young company and we would have been able to reach our goals sooner had more cash been available.”