The UK's business rates system has been labelled 'broken' by industry leaders as it emerged that firms are facing a long and arduous process in appealing against huge rises in their bills. The Taxman is currently swamped by a tsunami of appeals from desperate companies, with many facing massive hikes in their business rates. According to a report by the Institute of Directors, the average business rate increase has been 73% since 2010, with some firms facing rises of up to 200%.
The appeals process is taking years to resolve, with some firms waiting over two years for a decision. This is having a devastating impact on businesses, with many struggling to survive in a tough economic climate. The Institute of Directors has described the system as 'broken' and has called for urgent reform to make it more efficient and effective.
The government has defended its business rates system, stating that it is helping to fund vital public services. However, opposition parties have condemned the system, saying it is a tax on businesses and is stifling economic growth. The Labour party has pledged to reform the system if they come to power, saying it needs to be made more straightforward and efficient.
Industry leaders are calling for the government to take action to address the issue, saying it is having a major impact on businesses across the country. The British Retail Consortium has said that the business rates system is 'killing off' small businesses, with many unable to afford the increased bills.