Call to abolish rate cut caps

CHANCELLOR Philip Hammond has been urged to scrap the capping of business rate cuts. An overhaul of England’s £30billion-a-year rates system included limiting how much rates could jump.

To offset it, restrictions were also put on how much bills could fall. Among those denied big savings have been hard-hit high street stores, especially those outside the South East of England. Struggling Debenhams is estimated to have lost out on £5million of savings alone. Businesses lobby group the CBI is demanding the “downward transition” be abolished in this month’s Budget.

In a letter to Hammond, it also calls for firms building or renovating properties to be exempt from rates for a year under a Business Growth Accelerator. However, the two ideas alone would cost more than £1bn in lost income for the Treasury next year.

The CBI submission also calls for more tax perks to encourage investment, further reform of the apprenticeship levy, plus funding for a one-stop shop for firms to get Brexit advice.

Carolyn Fairbairn, CBI director general, said: “As we near the end of Brexit negotiations, the world’s gaze is fixed on these shores.

“This Budget is a pivotal moment and a chance to showcase the UK as an open, collaborative and confident nation.” It comes amid mounting signs that Brexit uncertainties are affecting the economy.

The British Retail Consortium said it was denting consumer confidence, compounding the problems for many stores.

Retail sales fell 0.2% year on year in September – the weakest for five months.

Meanwhile, a survey by the British Chambers of Commerce out yesterday found exports had slowed and investment plans are being scaled back.

BCC director general Adam Marshall said: “The lack of bold moves to boost business at home are starting to bite.” Amount plans could cost Treasury in lost income in 2019

Rolls- Royce has announced plans to hire another 200 workers – despite issuing a Brexit warning last week. The luxury car maker yesterday launched a recruitment drive for staff at its Goodwood base in West Sussex. The move will take its workforce there to more than 2,000 for the first time. However, owner BMW last week issued a grim warning about the impact of a no-deal Brexit on its UK plants. It has already decided to close Goodwood for two weeks after Brexit at the end of March.