High street businesses punished by ‘outdated’ business rates system, Chancellor says

Chancellor of the Exchequer Rachel Reeves has pledged to “overhaul” business rates, calling the current system “outdated”.

Addressing the Labour Party conference on Monday, she said high street businesses are being “punished by our outdated system of business rates”.

This commitment aligns with the Labour Party’s promise to help revitalise the high street.

In June, Reeves hinted to the BBC that Labour would try to reduce rates for small businesses and high streets, ensuring that large multinationals and tech companies “pay their fair share”.

At the conference, Reeves also delivered a promise for a “new deal for working people”.

She said: “With a ban on exploitative zero-hour contracts; an end to fire and rehire and a minimum wage which takes into account the real cost of living. So, at last, we will have a genuine living wage in our country.”

The government’s Employment Rights Bill was outlined in the King’s Speech, introducing key changes including workers ‘day one rights’ for parental leave, sick pay, and protection from unfair dismissal.

Recently, retailer Sid Sidhu of St John’s Budgens raised concerns that this would make hiring practices “quite difficult”.

He explained that the government’s recent changes to employment law would make it more challenging to terminate a new hire if necessary.

“It’s tough because ultimately, the door swings both ways. If you’re hiring someone based on their CV and what they’ve said, but they fail to deliver in the first couple of weeks - for example, if their attendance is terrible - then you’re right,” he said.