HAMPSHIRE Chamber is challenging George Osborne to "fundamentally overhaul" the system of business rates.

Ahead of the Chancellor’s Autumn Statement, the Chamber has joined business groups across the country in arguing for radical reform of rates rather than merely incremental change.

Chief executive Stewart Dunn said an extension of business rate reliefs announced in the 2014 Budget was welcome but much more needed to be done.

His call follows an online survey of Hampshire Chamber members which reinforced concerns over lasting unfairness in how rates are set.

Mr Dunn said: “Business rates are levied irrespective of profitability and in most cases continue to be based on valuations set at the height of the property boom. They are a critical issue as they don’t take into account the ability to pay.

“We want the Chancellor to freeze business rates until 2017, the next time there will be a full revaluation of premises, and completely reform the system by 2022.

“The government should be bold enough to explore a fundamental overhaul such as setting rates based on planning bands instead of hypothetical rental values.

“Business rate reform, coupled with tax relief on employers’ National Insurance contributions, would, for example, give more businesses the financial leverage to take on apprentices, graduates and other young people.

“This would create an investment in future skills to keep the UK competitive given that the baby boomers are set to retire from the workplace in large numbers over the next few years.”

Mr Dunn also supports calls for the government to introduce new measures to accelerate the progress of infrastructure projects.

Enhancing the compensation paid to affected householders and business owners would, he said, cut down the delays in the infrastructure planning process.

Financial incentives for communities to help accelerate housing developments should also be strengthened, Mr Dunn added.

John Longworth, director general of the British Chambers of Commerce, said: “Businesses across the country want to see more urgency in delivering infrastructure projects, and in turn they will deliver growth.

“The Autumn Statement is a great opportunity to introduce targeted measures that unlock the roads, housing, rail links and energy developments businesses want.”

The Chancellor will deliver his Autumn Statement to the House of Commons on Wednesday December 3.