Ahead of the Budget, Liberal Democrat MP for Kingston and Surbiton, Ed Davey, has written to the Chancellor to call for an overhaul of the broken business rates system and extend rates relief in the interim to "back local businesses" and save our high streets.

 In the letter, signed by dozens of fellow Liberal Democrat MPs, Ed Davey backed calls to overhaul the broken business rates system which they said is "unfair on companies, bad for our local communities and damaging for our national economy". 

 It said that due to the "outdated" business rates system, "pubs, restaurants and shops are being forced to close" and that "consumers are seeing the cost of this unfair tax passed on to them".

Several local businesses are having to close down (Credit: Tilly O'Brien)

 Kingston and Surbiton's MP also criticised the previous Conservative government's failure to live up to its promises in reforming business rates as stated in its 2019 manifesto, saying that "businesses are tired of being treated with such cynicism and relying on a patchwork of last minute, temporary reliefs".

 Ed Davey MP backed the Liberal Democrats' calls to replace business rates with a new, fair system by April 2026, making this Budget the last one to include business rates at all. 

 The new system, known as a "Commercial Landowner Levy" would be "based purely on the value of the land where the business is located" and would be based on annual revaluations.

 Kingston and Surbiton's MP pushed the government to act urgently and make this "the last Budget where business rates are a permanent feature of our tax system".

 As an interim support measure, Ed Davey MP also called on the Chancellor to keep in place the existing 75% relief for retail, hospitality and leisure businesses, until the new system is in place; and to freeze at least the small business multiplier for the same period.

 Ed Davey MP said: "Local businesses here in Kingston and Surbiton make an incredible contribution and we are lucky to have them.

"They serve as the heart of our community and the backbone of our economy. We need to back them so that they can continue to provide us with their fantastic services."

 He continued: "The previous Conservative government acted as a barrier to business at every turn, crashing the economy and forcing far too many to close through their disgraceful mismanagement. 

 "For years, the Conservative party promised time and again to overhaul the outdated business rates system but as was far too common they failed to live up to their word.

 "It's outrageous that under the Conservatives, our small bricks and mortar high street businesses have seen their rates go up whilst out of town Amazon warehouses have seen their rates go down.

 "The new government cannot afford to miss this opportunity at the Budget: they must overhaul business rates so that businesses here in Kingston and Surbiton can continue to thrive."