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The ACS makes the recommendations in its response to the second part of the Treasury’s review of the system in England which focuses on valuations, appeals, the administration of rates and alternatives to the established process.
James Lowman, the organisation’s chief executive, said: “The business rates system of the future should incentivise investment rather than penalising it, be simpler, easier and cheaper to administer.
“It should also be fairer in distributing the business rates burden across all types of businesses trading online and from physical spaces.
“More immediately, we are calling on the government to continue to provide support to retailers beyond April to prevent a spike in their business costs which would negatively impact local shops’ ability to provide essential products and services to their customers and undermine economic recovery.
“Local shops are a lifeline for the communities they serve and this has been particularly evident during the Covid-19 crisis.
“The support that has been provided to retailers through the pandemic has been paramount in ensuring they can continue to feed communities safely and effectively.”
In its submission, the ACS makes recommendations including incentivising investment by allowing ratepayers to recoup the costs of investment – mirroring the way the Scottish business growth accelerator scheme works.
Another suggestion is the introduction of an online sales levy or “an alternative rating methodology” for online distribution warehouses to account for the digital economy.
The organisation is also calling for the speeding up of the appeals process by shortening statutory timeframes for the valuation office agency (VOA) to respond to checks and challenges.
The final suggestion is that the valuation process be simplified to reduce pressure on VOA resources and allow focus on valuing owner-occupied properties.
