The Chancellor is set to boost firms and High Streets by capping increases in business rates in tomorrow’s Autumn Statement.
Rate rises are expected to be limited to 2% next year instead of being linked to inflation.
It comes as Sir Charlie Mayfield, chairman of the John Lewis Partnership, hit out at the “bonkers” tax rules which make it “more advantageous for [business owners] to sell to a big multinational rather than their own workers”. He added: “The owner of one of our biggest fish suppliers to Waitrose, who employs around 120 people, is keen to pass his business to his staff.
“Yet under present tax rules it doesn’t make sense for him to do so. It’s bonkers.”
The Autumn Statement is set to contain measures to help spawn a new generation of indirect employee-ownership firms such as John Lewis. Changes are also expected so that these partners get tax relief on bonuses up to £3000. At present, partnerships are liable to pay income tax and National Insurance contributions on profit-related pay, whereas shareholders in limited companies pay a lower corporate tax rate. “This is a hard-nosed commercial agenda and would help create a more plural and rebalanced economy,” Mayfield said.
