Introduction
Conduct of the Committee’s inquiry
1.For the purposes of this report, non-domestic property rates will be referred to as business rates, as they are more commonly known. This report considers the administration of business rates in England and Wales. Business rates are handled differently in Scotland and Northern Ireland.
2.The Treasury Committee launched the Impact of business rates on business inquiry on 1 February 2019. This inquiry was launched to assess:
- The impact of changes in business rates policy since 2017, in particular
- changes in reliefs and allowances available;
- the ability of business to pay; and
- the relationship between Business Rates and the behaviours it drives in business.
- How the current business rates system measures up against the following pillars of good tax policy; that is, to what extent:
- it is fair;
- it supports growth and encourage competition;
- it provides certainty; and
- it is coherent.
- The economic justification for a property-based business tax alongside potential alternatives:
- the impact of business rates on rental prices;
- the impact of business rates on property prices;
- alternatives to property-based taxes, such as the proposed digital services tax;
- the problems associated with property-based taxes; and
- the impact of changes (proposed and actual) of Business Rates on Local Authorities and Councils, and the High Street.
3.We would like to thank all of those who engaged with our inquiry.
4.We held five oral evidence sessions:
- 7 May 2019—John Boulton, Technical Strategy Department Manager, Institute of Chartered Accountants in England and Wales; Tom Emlyn Jones, President, Rating Surveyors Association; Neil Leitch, Chief Executive, Early Years Alliance; Paul Crossman, Multiple pub operator; Kate Nicholls, Chief Executive, UK Hospitality; and Mandy McNeil, Vice Chair, Save UK Pubs.
- 22 May 2019—Meryl Halls, Managing Director, Booksellers Association; Chris Harris, Group Property & Development Director John Lewis Partnership; Sebastian James, Chief Executive, Boots UK; Catherine Gras, Spokesperson for Gas Storage Operators Group and Chief Executive, Storengy UK; Adam Blaskey, Founder, The Clubhouse; Seamus Nevin, Chief Economist, Make UK; and Eleanor Griggs, Land Management Adviser, National Farmers Union.
- 4 June 2019—Andy Street CBE, Mayor, West Midlands Combined Authority; Cllr Richard Watts, Islington Council Leader, Local Government Association; Prof. Chris Turner, Chief Executive, British BIDs; and Ojay McDonald, Chief Executive, Association of Town and City Management.
- 19 June 2019—Jerry Schurder, Head of Business Rates, Gerald Eve LLP; Rachel Kelly, Senior Policy Officer, British Property Federation; Kevin Muldoon-Smith, Lecturer, Northumbria University; Tej Parikh, Chief Economist, Institute of Directors; and Steve Rigby, Group Property Director, Tesco.
- 10 July 2019—Melissa Tatton, Chief Executive, Valuation Office Agency; Alan Colston, Chief Valuer, Valuation Office Agency; Jesse Norman, Financial Secretary to the Treasury, HM Treasury; Rishi Sunak, Minister for Local Government, Ministry of Housing, Communities and Local Government; and Mike Williams, Director Business and International Tax, HM Treasury.
5.In response to our call for evidence we received over 140 submissions from stakeholders. This included submissions from representative bodies of business, campaign organisations, independent businesses, national brands and chains, chartered surveyors, councils and charities.
6.We held an outreach event in Birmingham on 20 May 2019 to gather evidence. This event allowed us to meet organisations on an informal basis and included several organisations who had not previously engaged with us.
Published: 31 October 2019