Entrepreneur and retail boss Sir Philip Green has called for an overhaul of UK business rates, following a government decision to delay a revaluation of the fees from 2015 to 2017 – two years after the next General Election. Green claims that the current rates are crippling high street shops, leaving them at a huge disadvantage compared to their online rivals.

Business rates are taxes levied to help pay for local services, and are based on the value of the property. They were last re-valued in 2008, and as such, even though many shop rents have since been reduced in line with the downturn, the rates themselves have stayed the same. Green claims that the government artificially fixes the rates “so they don’t lose any revenue”, with the consequence that “small shops cannot afford to trade”. He also proposes a rates freeze – or even a “rates holiday” – for owners of small shops.

With high street premises already having to foot the bill for corporation tax, employee wages and the continued depressed state of the economy, Green has a point. Plus, with respect for councils at a low, many shop owners must feel that the money they do pay is not being used wisely.

Some of Green’s fellow entrepreneurs have argued against a parallel levy on online shops, which has been suggested as a means of levelling the playing field. Ocado boss Tim Steiner, for example, stated that “bricks-and-mortar retailers need to shut more shops and stop moaning about it”. But that completely neglects the benefits that a physical high street brings to any local area, in terms of social benefits and youth employment.

With other initiatives underway to try and resuscitate Britain’s high streets, it seems short sighted for the government to continue to take money that could be better spent on revitalising important aspects of the economy and daily life. Naturally, Green’s Arcadia empire would stand to benefit, but his suggestion of a “rates holiday” for small shops suggests that he is looking at a bigger picture than merely his own concerns. In the cold light of day, a delay in the revaluation looks egregious and unjustified.

Image of Sir Philip Green courtesy of Featureflash / Shutterstock.com