F Hinds joins 100 firms demanding rates overhaul
Britain’s largest independent family jeweller, F Hinds has joined more than 100 of Britain’s biggest companies calling for business rates to be overhauled.
The signatories of the open letter, published in The Daily Telegraph on Tuesday, call the conversional tax a “critical problem”, saying that business rates “are no longer fit for purpose for the 21st Century” and must be revamped in order to “unleash investment”.
F Hinds is the only jeweller signatory, whilst other firms inlcude Tesco, Marks & Spencer and General Motors.
Led by the British Retail Consortium (BRC), the firms are predominantly retailers, but it has also been backed by manufacturers, bookmakers, gyms and property companies.
It is understood that business rates bring in around £25bn for the Treasury each year, but businesses believe that it is hindering investment. The letter proposes that the political parties should commit to reform in their manifestos for the 2015 general election.
Andrew Hinds, director at F Hinds told Jewellery Focus: “One of the reasons why we regularly reject potential stores is because the business rates are too high, despite the fact that we would very much like to open new shops.
“Another factor is that business premises were last revalued in April 2008, when property prices were exceptionally highly valued and the business rates currently levied still reflect that. It is estimated that high street shops pay a disproportionate 28% of all business rates, and are estimated to be the third largest outgoing after employment costs and rents.”
The Letter
As the Daily Telegraph has consistently pointed out, the current system of business rates is no longer fit for purpose for the 21st Century. Business rates are higher than property taxes anywhere else in Europe and are the second highest in the OECD. This is a critical problem for all of British business.
A recent survey demonstrated that 93% of MPs agree that the fundamental reform of business rates would revitalise our high streets and town centres. Manufacturers, retailers, the hospitality trade, property, service industries and businesses large and small are all held back by business rates.
A modern, sustainable and transparent system would unleash investment that could bring skilled and entry level jobs and new and expanded businesses into our local communities.
Those who seek a competitive tax regime as a draw for investment and jobs should apply that logic to business rates.
It is no longer an option to say that reform is too difficult or complicated and we call on all political parties to commit to fundamental reform in their manifestos for the next General Election.
The Signatories
General Motors
Tata Steel
BBPA
British Property Federation
Federation of Small Businesses
National Hair Dressers’ Federation
Gala Coral
Ladbrokes
WHSmith
Homebase
Marks & Spencer
Sainsbury’s
Morrisons
B&Q
Screwfix
Intu
Association of Licensed Multiple Retailers
Argos
Thorntons
Timpson
KFC
Bensons
Harveys
BRC
Paperchase
Risk Capital Partners
Rymans
Betfred
John Lewis Partnership
Westminster Property Association
Heineken
Hammerson
Costa
Insite Asset Management
Boots
Mothercare
Hark Group
3663
Foyles
Booksellers
JLL
BIRA
Brighthouse
Greggs
Co-op
HTA
DFS
Gerald Eve
New River Retail Ltd
Retra
Picton Capital Limited
BACTA
Lloyds Pharmacy
Crabtree & Evelyn
Capital Regional
Fenwick
Debenhams
New Look
Hughes Electricals
Wilkinson Cameras
BCSC
Whitbread
F.HINDS
Westfield
Primesight
Freight Transport Association
Business Centres Association
New West End Company
Tesco
Forum for Private Business
British Aggregates Association
TGI Friday’s
Stanhope
Henderson Real Estate
Osborne Group
Holland & Barrett
GNC
Majestic
Land Securities
Premier Foods
Barretts Digital
Stonegate
Tragus
Rural Shop Alliance
Vauxhall
CBRE
Recruitment & Employment Confederation
Cushman & Wakefield
UK Petroleum Industry Association
The Buildings Futures Group
British Chambers of Commerce
Karen Millen
Supergroup
Bargain Booze
Wine Rack
Asda
3 Sisters Food Group
Kronospan
Frogmore
Costcutter
Ann Summers
OMC
Virgin Active
Fitness First
Waterstones
SSI UK
Association of Convenience Stores