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Scrap business rates in favour of land tax, Lib Dems say
Business rates should be abolished and replaced by a tax on land values to boost investment and productivity, the Liberal Democrats have said.
The party will publish proposals this morning to scrap business rates in favour of a commercial landowner levy (CLL).
The levy – paid by owners rather than tenants would remove buildings and machinery from calculations and tax only the land value of commercial sites.
Party leader Vince Cable said business rates were a tax on productive investment and a burden on high streets struggling to adapt to the rise of online retail.
The manufacturers’ organisation, EEF, said it was a “strong addition” to the debate and that innovative solutions were needed to ensure stability from a future tax regime.