Sainsbury's chief financial officer to lead moves to establish alternative business rates regime

The British Retail Consortium (BRC) told Out-Law.com that Rogers would chair a group of other industry representatives with the aim of issuing recommended changes to the business rates regime in the first half of 2014.

A BRC spokesperson said: "The BRC is leading a rigorous process of examining options for reform of the business rates, supported by a broad group of stakeholders from across the industry. John Rogers is chairing a member sponsor group. We believe reform of the business rates system will bring benefits in terms of new investment and jobs across the UK."

The BRC late last month appointed Ernst & Young to support the reform initiative. It said at the time that its aim is to deliver "changes to business rates that will contribute to UK economic growth, reinvigorate high streets and town centres across the country, and secure new retail jobs".

"This is a very important step in providing evidence to the Government from recognised retail experts that the current rating system is outdated and has a crippling affect upon many retailers at a time when the reinvigoration of the high street is supposed to be one of the Government's priorities," said Andrea McIlroy-Rose, a retail property expert at Pinsent Masons, the law firm behind Out-Law.com.

Business rates are charged on most non-domestic premises including shops, offices, warehouses and factories and form the third biggest outgoing for small businesses after rent and staff costs. Retailers have repeatedly called on the Government to re-examine the effect of business rates on retailers, with some saying the regime disadvantages traditional shop owners compared with online retail counterparts.

Business rates are calculated on the basis of the value of the property. Business premises are assigned a rateable value by the Valuation Office, which is used by the local authority to calculate how much the occupier of that property should pay. Revaluations usually take place every five years. However, last year the Government announced that the next revaluation exercise would be postponed for two years, until 2017; in a move it said would provide "tax stability" to shops and businesses.

Industry groups reacted angrily to the decision, as it means that rates continue to be based on the 2008 revaluation, and does not therefore account for the subsequent financial crisis.

In September retail property expert Tom Johnson of Pinsent Masons called for the Government to undertake "a long overdue overhaul of the business rates system" so as to give high street retailers in particular a chance to thrive in the tough economic climate.