The Chancellor’s business rates announcement could be an easy way of appearing to be addressing the issue without actually having to do anything.

It was a textbook example of Osbornian politicking. Tuesday evening saw the first stories appear on news websites – preannounced, leaked, whichever adjective you prefer – regarding a review into the structure of business rates. By the time Wednesday’s papers were published, it was clear what the key business rates announcements would be.

And at first glance, the news for retailers is positive. Organisations such as the British Retail Consortium, British Council of Shopping Centres and the Federation of Small Businesses have long been calling for fundamental reform of the rating system, not just its administration, and the announcement of this review implicitly shows that the Government recognises the issues that exist. It is the first step towards building a fairer system, something that all businesses – not just retailers – have been requesting for a very long time indeed.

But it is far too soon to see the review as a panacea for the current problems in the system. As with all budgets and autumn statements, the devil is in the detail and the reality doesn’t always strictly reflect what was announced at the despatch box.

We know that the review will only consider changes that are fiscally neutral – ie: the overall tax take won’t be reduced – and this obviously means that one of retailers’ greatest complaints, the onerous level of the overall burden, will not be reduced any time soon unless, contrary to expectations, other sectors will be required to pay more.

The full remit of the review remains to be seen and there is absolutely no guarantee that, once it reports its findings, the Government will actually adopt any of the recommendations.

The fact that the review is to report in 2016 also smacks of a Chancellor trying to kick an issue into the long grass. Osborne has faced calls from all quarters to reform the business rates system, and the announcement of this review looks like an easy – and, crucially, very cheap – way of appearing to be addressing the issue without actually having to do anything.

Elsewhere, the increase to £1,500 in the discount available to shops and food and drink premises (with rateable values no greater than £50,000) will have a positive impact and help many of the most vulnerable retailers, as will the extension of the small business rates relief scheme for a further year.

But as useful as these initiatives are in the short term, they do very little to address the long-term unfairness and punitive level of business rates. Further action is required.

From a business rates perspective, this was a budget that will be ultimately disappointing for many retailers. There were crumbs of comfort here and there, but precious little movement towards the fundamental changes that the system so badly needs and retailers have been lobbying for.

The job is not yet done and the fight is not yet won – retailers must keep campaigning for genuine and far-reaching reform.

  • Jerry Schurder, head of business rates, Gerald Eve