Healey’s business rate tweaks won’t stop ‘hollowing out’ high street, business group warns

John Healey's recent adjustments to high street business rates are deemed by Britain's largest business group as a mere "sticking plaster" that won't alleviate the "hollowing out" of town centres. In his first Budget speech, Healey announced that small businesses would no longer have to pay rates on earnings below £18,000 and that all other retail, hospitality, and leisure firms' rates would be frozen.

This decision, funded by taxes on gambling and e-commerce, is intended to help businesses thrive. However, the British Chambers of Commerce (BCC) and the British Retail Consortium (BRC) argue that Healey's changes are insufficient to address the underlying issues plaguing British high streets. The BCC's Shevaun Haviland stated that the move is merely a "sticking plaster," criticizing the government's failure to reform the business rates system, which she believes is causing town centres to decline.

Haviland also noted that the freezing of rates will not prevent a 3.5% increase next year, leading to an additional £250m in business rates bills. Haviland highlighted that the high cost of employing staff, including an upcoming hike in national insurance contributions for employers, is the main concern for businesses. She emphasized that businesses cannot pass on these costs without risking their survival.

The BRC described Healey's policies as "smoke and mirrors," as they will still result in a 3.5% rate increase next year.