The British Chancellor of the Exchequer is considering reforming commercial real estate taxes to reduce the burden on small and micro businesses expanding.

British Chancellor of the Exchequer Rachel Reeves said on Thursday that she will reform the commercial property tax system to drive economic growth and reduce the expansion threshold for small and micro businesses. As the annual budget on November 26 approaches, speculation about tax increases and concerns about inflation have already begun to affect the confidence of some businesses and households. Most economists believe that due to factors such as rising borrowing costs, uncertain economic growth prospects, and the failure of parliament to pass welfare cuts, Reeves will need to raise hundreds of billions of pounds in additional fiscal revenue. Reeves stated when releasing a report on commercial property taxes: "Our economy is not collapsing, but it is indeed stagnating." The report proposes solutions to address the sudden increase in commercial property taxes faced by small and micro businesses during expansion. She said in a statement: "Tax reform is crucial, including eliminating the sudden increase threshold for commercial property taxes, improving the fairness of tax relief, and these measures are important for promoting growth." In addition, the government is considering adjusting the way taxes are calculated and providing more tax relief for businesses that increase the value of their assets through property renovations. The report also stated that more details of the reforms will be announced in the upcoming budget. Helen Dickinson, CEO of the British Retail Consortium, welcomed the reform plans but emphasized that the government should implement the promised tax rate cuts for the retail, hotel, and leisure industries as soon as possible. She said: "Many businesses in employment and store investment will remain stagnant until specific plans are outlined in the budget."