The existing business rate regime in England acts as a drag on the government’s goal of a high wage, high productivity and high investment economy, say the organisations.

With up to 50 per cent of business investment potentially subject to business rates, the current system actively disincentivises business investment in decarbonisation and wider investments which can improve all-important productivity, which is the only sustainable route to higher wages.

The joint statement from businesses is backed by 40 trade associations representing around 261,000 businesses and nine million employees.

“Action to get investment flowing into and around the UK is sorely needed to reinforce our recovery. The government deserves credit for convening the supply chain advisory group to unblock temporary challenges, but as we’re seeing with energy prices, there is no substitute for longer-term planning and investment,” said Rain Newton-Smith, CBI chief economist.

“The Chancellor has an opportunity to fix this, starting with fundamental business rates reform at the Budget and Comprehensive Spending Review. By setting out an approach which attracts investment, he can equip the UK with the tools it needs to secure the high wage, high productivity and high skill economy of the future.

“With up to half of business investment potentially subject to business rates, it has literally become a tax on investment. Action to stimulate investment, starting with business rates reform, unites firms spanning the whole economy. If the government is serious about achieving its net zero ambitions, kicking reforms further into the long grass cannot be the answer.”