The debate over business rates is already a contentious issue with numerous bodies campaigning for a change to the system which would benefit small retailers in particular.
According to many critics, the revaluation postponement has only has only added to the problems and will lead to more vacant shops on the high street. However, property agent GVA believes the government could ease the pressure on businesses by using the estimated £1 billion saved on “transitional” rate relief to freeze business rates for the next two years.
Senior director at GVA, David Jones, believes this would be the ideal solution to the business rates debate in the short term.
He says; “The revaluation deferment is creating continued hardship for businesses in some of the worst affected areas of the UK.
“We therefore favour easing the burden for those affected, but we recognise that this could be difficult to target – as we have highlighted, solutions exist, however.
“We’re calling on the government to give some further thought to this matter.”
GVA’s solution certainly seems like the best case scenario for businesses, as campaign groups believe that freezing business rates would allow many to pay off debt and put money aside for growth. However, the Treasury does not necessarily agree that this move would prove beneficial to the overall economy.
A Treasury spokesman said; “We are committed to supporting business and take seriously the impact of business rates.
“To date, our approach has been to provide support where it is most needed – small businesses, charities and businesses in hardship.
“Any further business rates support would need to be balanced against the tough decisions needed to reduce the deficit.”
Calls for a review of the business rates system are supported by a number of retail and property industry bodies including the British Retail Consortium (BRC) and the British Property Federation (BPF).
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