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Economic Development

Business groups hit out after Treasury delays review of business rates again

Treasury says it wants to review rates after economy has returned to some form of normality

The Treasury(Image: Getty Images)

Business groups have hit out after the Treasury has confirmed it is delaying the final report on its review of business rates until later this year.

Ministers say they will now publish the findings from the department's fundamental review into the property tax until the autumn, when it expects there to be more economic certainty.

The major review of the business rates system was called by the Chancellor at last year's Budget, with a call for evidence launched in July.

Responses from the call are now "being considered" by the Government, with plans for an interim report to be released on March 23.

Retail, hospitality and leisure operators are currently benefiting from a business rates holiday for the current financial year, which will end on March 31.

Sector bosses have called for the £11bn tax break to be extended for another year after the industry was battered by enforced closures due to the pandemic.

Kate Nicholls, chief executive of trade group º£½ÇÊÓÆµHospitality, said: "The business rates system as it relates to hospitality has been broken for some time.

"It is an antiquated system of tax that bears almost no relation to the realities of business in the 21st Century. It needs addressing, so a delay in the review is obviously a disappointment.