New figures out today show that local authorities in England raised an extra £1.1bn from businesses last year in business rates. In advance of the Spending Review next week, EEF is reiterating its call for all installed plant and machinery to be removed from the calculation of rateable values for business rates to create a business rates system which supports productive investment.
Commenting Lee Hopley, Chief Economist at EEF the manufacturers’ organisation said:
"The government has rightly put boosting productivity at the heart of its mission in this Parliament. To achieve this it needs to take every opportunity to tilt the business environment towards supporting companies to invest and grow in the UK. The inclusion of installed plant and machinery as part of the calculation of rateable values represents a tax on attempts to boost productivity.
"From blast furnaces to turbines and boilers, significant items used in sectors such as steel are taxed on multiple occasions. Business rates should be a tax on just business property as it is in other competitor countries in Europe. Removing plant and machinery from the calculation of business rates will help to achieve that and make Britain a better place to anchor manufacturing."