​Episode 188: Untangling the Business Rates Knot with John Webber – The Ceres Podcast

In Episode 188 of The Ceres Podcast, Stelios sits down with John Webber, Director & Head of Rating at Colliers, to dissect the implications of the latest UK budget and its impact on business rates. This conversation, brimming with insights, explores how current policies continue to frustrate business growth and hinder economic competitiveness.

John opens the discussion by highlighting how businesses are increasingly burdened by a tax system that many see as outdated and excessively complex. Despite promises of reform, the latest budget forecasts a staggering 40% rise in business rates over the next five years, escalating from £29 billion to nearly £40 billion annually. This trend, John argues, is counterproductive, especially for sectors like retail and hospitality, already grappling with high overheads and a sluggish post-COVID recovery.

Stelios and John delve into the mechanics of business rates, questioning their fairness and efficiency. Why, they ponder, should a system penalise small businesses for modest expansions while offering no incentives for growth? They discuss the challenges for high-street retailers who pay disproportionately higher taxes compared to online giants, exacerbated by outdated relief systems and inconsistent multipliers across devolved UK nations.

John’s observations extend to the broader economic context. He critiques the government’s reluctance to implement meaningful reforms, attributing it to a combination of political inertia and the civil service’s grip on policy execution. The conversation touches on international comparisons, noting how other countries avoid making property taxes a disincentive for investment, unlike the UK’s approach.

One of the standout moments is John’s solution-oriented perspective. He advocates for a simplified, equitable tax system where every business contributes a fair share. A lower, consistent multiplier – capped at 35p – could not only ease the financial strain but also encourage businesses to expand, creating jobs and stimulating economic growth. This, he argues, would eliminate the need for endless reliefs and restore confidence among investors.

Stelios adds to the discussion by exploring how changing societal trends and out-of-town retail developments have reshaped consumer behaviour. They agree that while business rates aren’t solely to blame for the decline of town centres, reforming the system could play a pivotal role in their revitalisation.

The episode concludes with a sobering reflection on the lack of political will to address these challenges. Stelios and John hope that continued dialogue will spark the necessary changes, even if the road ahead looks uncertain.