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\t\tThe CBI said business rates “effectively penalise investment”\t<\/p>\n\t\t\tMonday 27 April 2026 12:01 am
\n\t\t\t\t\t\u00a0|\u00a0\u00a0Updated:\u00a0<\/p>\n
\t\t\tSunday 26 April 2026 4:12 pm\n\t<\/p>\n
\t\tThe CBI said business rates “effectively penalise investment”\t<\/p>\n
Britain\u2019s largest industry body has called on the government to urgently reform business rates, which it says is a \u201cgrowth killer\u201d.<\/p>\n
The Confederation of British Industry (CBI) has said the government should keep its manifesto pledge to reform the business rates system as a matter of urgency.\u00a0<\/p>\n
Business rates<\/a> is a tax determined by the value of a firm\u2019s property, but recent revaluations of companies\u2019 rateable values have sent bills soaring for many.<\/p>\n The tax has played a major role in cancelled, reduced or delayed investment in the properties of 32 per cent of the CBI\u2019s nearly 700 members, according to a new survey.<\/p>\n The UK has the highest property tax levels in the OECD, according to the CBI, with property tax as a share of GDP more than four times higher than that of Germany.\u00a0<\/p>\n \t\tFirms say they would reinvest tax savings<\/p>\n As many as 76 per cent of CBI members said higher business rates bills suppress investment, while more than half (53 per cent) said uncertainty around their future bills undermines their ability to commit to long-term investment.<\/p>\n The CBI said any savings made by reforms to business rates would be reinvested into the economy. Three in ten of businesses surveyed said they would put between 90 and 100 per cent of business rates savings into new investment.\u00a0<\/p>\n Firms would use savings from a less burdensome business rates system to invest in productivity, automation, property improvements and recruitment, according to the survey.<\/p>\n \t\t\t\t\tRead more<\/p>\n