This week, Hello Dorking attended the launch of the Real Rates Reform campaign at the Institute of Directors, joining representatives from business organisations, town centres and industry to discuss the future of business taxation.
One of the strongest messages from the event was that the business rates system was designed for an economy that looks very different from the one we have today. Since its introduction, retail and consumer behaviour have changed dramatically, yet businesses with physical premises continue to carry a significant share of the tax burden.
A speaker posed three simple questions that resonated with many in the room:
- Can your teenager get a Saturday job?
- Is your high street vibrant?
- Can you still afford fish and chips on a Friday?
While simple, they reflect wider issues. High streets create local jobs, provide opportunities for young people entering the workforce, support entrepreneurship and contribute to the character and vitality of our communities. When businesses face increasing costs, it can affect investment, recruitment and long-term confidence.
At Hello Dorking, we regularly hear from businesses that business rates remain one of their biggest overheads. Although many other pressures exist, including rising employment costs, utilities and inflation, the way business property is taxed continues to be a significant concern for many independent retailers, hospitality businesses and service providers.
The Real Rates Reform campaign proposes a Hybrid Business Rate, which aims to modernise the current system by reducing the burden on businesses occupying physical premises while broadening the tax base to better reflect today’s digital economy. Whether or not this specific proposal becomes government policy, the campaign has started an important conversation about whether our tax system is fit for a modern economy.
As the organisation representing Dorking’s businesses, Hello Dorking believes it is important that the voices of town centres are heard in this national debate. Thriving high streets don’t happen by accident—they require investment, confidence and policies that recognise the value physical businesses bring to our economy and our communities.
If you’d like to learn more about the campaign and the proposed reforms, visit www.realratesreform.co.uk. We would also be interested to hear your views, as business feedback helps inform the conversations we have with local and national partners on behalf of Dorking’s business community.
