Cable: Broken business rates system should be abolished

Leader of the Liberal Democrats Vince Cable has warned the Chancellor’s business rates relief is nothing more than “hand-to-mouth support” and has called for the broken business rates system to be abolished.

Liberal Democrat leader Vince Cable said:

The UK high street is suffering the worst year on record, with in-store sales falling and hundreds of thousands of jobs lost.

While I welcome any relief, hand-to-mouth support for businesses simply isn’t sustainable. Liberal Democrats demand better. There needs to be a fundamental change to the system.

We must create a level playing field between the high street and online retailers. That means scrapping the broken business rates system and replacing it with a tax on land values that would boost investment and cut taxes for businesses in nine out of ten English local authorities.

The Liberal Democrats want to abolish business rates and replace it with a tax on land values, the Commercial Landowner Levy (CLL). The levy would remove buildings and machinery from calculations and tax only the land value of commercial sites, boosting investment and cutting taxes for businesses in nine out of ten English local authorities.

Liberal Democrat plans, passed at their Autumn conference, include:

Business rates should be abolished and replaced by a Commercial Landowner Levy based on the value of commercial land only
The levy should be paid by owners rather than tenants
Non-residential stamp duty should be scrapped to improve the efficiency of the commercial property market
Commercial land should be taxed regardless of whether the buildings above it are occupied; the tax should also apply to unused and derelict commercial land.