While the United Kingdom debates how to modernise its business rates system, Canadian retailers are watching closely because property‑tax structures affect profitability across North America.
Andy Burnham has launched a Treasury‑led review of the valuations that determine rates for pubs and hotels, appointing self‑described rates expert Jerry Schurder to head the effort. The government says the review will make valuations fairer for those sectors.
Industry groups, however, say limiting the review to hospitality ignores the broader problem. The British Chambers of Commerce warned that a sector‑by‑sector approach will not solve the "complex and outdated" system and called for a full overhaul.
The British Retail Consortium echoed that sentiment, noting retailers contribute five percent of the economy but shoulder twenty percent of rates bills. Its director Tom Ironside said it is vital that retail needs are not overlooked.
Restaurants were also left out, even as a recent report showed the top hundred restaurant groups saw profits plunge by 44 percent, partly due to rising rates.
The Real Rates Reform Alliance, led by chair Ros Morgan, called the review "disappointing" for its narrow focus and urged a wholesale replacement of the rates system funded by a levy on online sales.
Burnham's earlier pledge in the 2024 Labour manifesto to replace the rates system has not yet materialised, and critics say the current review is an opportunity to move beyond piecemeal relief.
Financial Secretary to the Treasury James Murray reiterated the government's commitment to a fairer system, saying the new valuation approach builds on recent cuts for pubs and aims to create a modern framework.