Rachel Reeves admits economy is ‘stuck’ as she confirms business rates overhaul
Treasury targets business rates to boost small companies’ expansion
- Chancellor Rachel Reeves has voiced concerns that the UK economy feels "stuck" as the Treasury unveils plans to overhaul the business rates system.
- The government is examining changes to the tax levied on commercial properties, with a focus on reforming small business rates relief rules to eliminate "cliff edges" that deter expansion.
- Under the existing framework, businesses opening a second property often lose access to small business rates relief, prompting calls for comprehensive reform from industry groups.
- High street retail leaders and hospitality groups have met with Ms Reeves, advocating for a significant shake-up following recent increases in business rates bills.
- The government is also considering altering how the tax is calculated to further minimise cliff edges and enhance improvement relief for businesses investing in properties.