// Chief executives of Heart of London Business Alliance, New West End Company and more urge Rishi Sunak and Liz Truss to address business rates
// Businesses in the UK are facing a 10% increase in rates next spring as inflation is set to climb even higher in the coming months
Prime Ministerial contenders Rishi Sunak and Liz Truss have today been sent a letter by prominent leading business leaders calling for the fundamental reform of business rates.
As the cost-of-living crisis continues, the letter calls for reform to help struggling businesses as well as points around tax-free shopping and visa reform.
Signatories include the chief executive of New West End Company, the leader of Westminster City Council and the chief executive of Heart of London Business Alliance.
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The letter, signed by Adam Hug, Jace Tyrrell and more states they are collectively calling on the new Prime Minister to “deliver the changes that real businesses want to see, to deliver growth, to invest in communities, and to make our economy work for both individuals and businesses. “
“At a time when prices are rising for everyone, we urge you to commit to a change that has been overlooked by successive Governments but can protect employment, reduce inflation, and promote growth: fundamental reform of business rates.
“Business rates have no connection to profit and are a regressive form of taxation, which tax businesses for existing rather than taking a proportionate amount of their income.”
The letter reads that reducing the costs of running a local business would be effective as part of a range of support.
“Energy prices are influenced by international factors, but the current excessively high level of business rates is entirely in the control of the Government and is being directly fed through to individuals doing their weekly shop.
“For years, this problem has been growing, disincentivising investment and devastating our high streets. The sticking plasters of over a dozen forms of relief add layers of administration and complexity.
“Business rates reform can empower local areas, allowing more businesses to grow and local authorities to keep more of the money generated by occupied high streets.”
It continues that it is “imperative that businesses can rely on their cash flow when they are facing extenuating financial pressures”, adding that research from the FSB shows that more than 440,000 small firms could go out of business because of late payments.
“We ask that you are both clear that you will be going further on late payments, to spur firms into action ahead of any legislative changes.”
The letter closes out with stating that it hopes that whoever succeeds in becoming the next Prime Minister “Will commit to tackling the challenges we have set out to support businesses, alongside more substantial measures to support individuals, as we all seek to navigate the current cost of living crisis.”
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