Rain Newton-Smith, CEO of the Confederation of British Industry (CBI), has called on the UK Government to overhaul the current business rates system in England, which many businesses consider outdated and counterproductive.

Ahead of the Autumn Budget, the CBI, which represents companies from across 12 sectors including retail and manufacturing, has proposed comprehensive reforms to make the system more competitive and transparent.

Businesses from across England have expressed concerns that the current system is overly complex, unpredictable, and a barrier to economic growth.

The CBI argues that the Government’s commitment to revenue neutrality—a policy requiring that any reform does not reduce overall tax revenue—limits the potential for meaningful change. Instead, businesses are urging a more flexible, long-term approach, which could involve short-term support for the hardest-hit sectors.

Key recommendations from the CBI include:

• A more progressive, banded system for business rates, similar to income tax, to eliminate cliff edges and create a fairer structure.
• Annual revaluations starting in 2029 to reduce uncertainty.
• Incentives for green investments, including a 120% super deduction for businesses retrofitting properties for energy efficiency.
• A review of business rates reliefs and exemptions to streamline the system and boost funding for essential infrastructure.

The CBI’s proposals come at a critical time, as businesses look for measures that can drive investment and growth, particularly in the wake of repeated calls for modernisation.

James Burchell, Co-Founder of Tellon Capital, who chaired the CBI’s committee on the issue, emphasized the need for fundamental reform to meet the challenges of a modern economy. Dan Foxton from Asda and Paul Greenwood of ExxonMobil also echoed the sentiment, highlighting the need for a fairer, more investment-friendly system.

Newton-Smith stated, “It’s time to fix the antiquated business tax system once and for all, seizing the chance to boost investment and grow the economy,” and reiterated that businesses want a system that supports, rather than hinders, growth and competitiveness.