Business rates: AAT calls on reform and annual revaluations
Responding to today’s report from the House of Commons Treasury Select Committee on the impact of business rates on business, Phil Hall, head of public affairs and public policy, AAT, said:
“AAT believes that the current business rates system needs an overhaul, and this report from the Treasury Select Committee is an important first step in achieving these necessary changes.
“Although there has been much debate about scrapping business rates and replacing them with other taxes, such as a profit-based tax, a sales tax or an energy tax, in our submission to the Committee earlier this year we made clear that these alternatives have varying degrees of disadvantage as well as advantages. For example, a profit-based tax would mean that many organisations currently paying substantial business rates, such as local authorities and schools, would no longer make any contributions, as well as being difficult to collect due to various legitimate profit-reducing activities undertaken by many companies.
“That’s why AAT is calling for a cross-party, consultative approach to reforming business rates and agreeing a fair and simple alternative. We would also like to see a pledge from the committee to move to annual revaluations, which would provide increased certainty and accuracy around business rates paid by companies.”
