The British Retail Consortium (BRC) has warned that increases in business rates could undermine plans to allow local authorities to retain revenues raised by the levy.
Earlier this week, the trade body submitted its response to the Local Government Resource Review in which it expressed support for allowing councils to keep a proportion of the money, but insisted the move must not give authorities carte blanche to maximise revenue.
While the BRC also welcomed the decision to retain the uniform business rate, it expressed particular concern about the possibility of a 5.6 per cent increase in levies from next year. Business rates rose by 4.6 per cent in April and the BRC claims a second hefty hike could put some retailers in jeopardy.
“The principles behind the proposed reforms to business rates are sound, providing a uniform central rate is maintained,” said BRC director of business Tom Ironside. “We ask that the government supports businesses and local authorities in the same way by imposing a lower increase in business rates.”
Earlier in the week, the Confederation of British Industry called on the Scottish government to rethink its plans to impose a new retail business tax on some large chains.
