British Retail Consortium sets out four options to reform the unpopular business rates system, including an energy-based tax.
Companies that pay low levels of corporation tax in the UK and use large amounts of energy could be penalised under proposals to overhaul the controversial business rates system.
The most radical option proposed by the BRC involves scrapping the current business rates system entirely and replacing it with a new tax that would be based on energy usage. The retailers’ group believes this could be delivered by amending the current Climate Change Levy.
It would potentially mean that companies or landlords which cut down on electricity usage or invest in more energy efficient technologies would face lower business rates bills than energy-intensive enterprises. However, the idea is likely to face stiff opposition from manufacturers.