30/06/2026
Business rates reform is back in the headlines following Andy Burnham's speech yesterday, in which he pledged to overhaul the system as part of a wider programme of devolving powers away from Westminster.
It's an idea that's likely to resonate with many business owners. After all, few would argue the current system works particularly well.
But as our Head of Tax, Andrew Diver, points out, reforming business rates has been promised many times before.
"Everyone agrees the current system doesn't really work. The difficulty is replacing the roughly £30 billion it raises, much of which funds local government.
"We've seen successive governments promise reviews and reforms. Some introduced additional reliefs or more frequent valuations, but nothing fundamentally changed the system.
"Labour has already consulted on reforms and now Andy Burnham has gone further, suggesting business rates and inheritance tax could eventually be replaced altogether by a land value tax. That would be a genuinely significant change.
"Until we see how the funding gap would be filled, it's sensible to remain cautious. We've heard the rhetoric before."
For now, businesses should treat these proposals as part of a wider political debate rather than something requiring immediate action.
If meaningful reform does emerge, we'll be helping our clients understand exactly what it means in practice.
