Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 10
10
Deferred
Implement business rates reset and Fair Funding Review; commit to long-term reform.
Recommendation
We renew our previous recommendation that the Government implements the business rates reset and Fair Funding Review. This should include transitional arrangements to ensure stability in funding levels after reset and review. The Government must commit to a fundamental long-term review of the business rates system to ensure business taxation is fit for a modern economy. (Paragraph 63) Social Care
Government Response Summary
The government states the business rates retention system reset will not happen before 2025-26 due to sector calls for stability, thereby deferring its implementation. It also acknowledges the need for improvements in the local government finance landscape and commits to considering further improvements in the next Parliament, without committing to a specific fundamental long-term review of the business rates system.
Government Response
Deferred
HM Government
Deferred
12. Following a manifesto commitment, the Government completed a review of the business rates system in 2021. Parliament subsequently passed the Non-Domestic Rating Act 2023 to give effect to the review’s conclusions, including measures to improve the responsiveness of the tax to changes in economic conditions. 13. Following calls from the sector for stability in this Parliament, the reset of the business rates retention system will not happen before 2025-26. The Government agrees to consider further improvements in the area and remains committed to improving the local government finance landscape in the next Parliament.