Louis XIVs Finance Minister Jean-Baptiste Colbert once described the art of taxation as “plucking the goose as to obtain the largest possible amount of feathers with the smallest possible amount of hissing”. On that measure, business rates must be the most painful method of goose plucking ever envisioned.

Few taxes attract more ire. When we surveyed 491 business-owners for the All-Party Parliamentary Group (APPG) for Entrepreneurship, over half thought that business rates were damaging to entrepreneurship in the UK (more than for any other tax).

Business rates do need reform, but it’s important to correct a common misconception.

Economists distinguish between legal and economic incidence. In layman’s terms, who signs the cheque to HMRC isn’t always the one who pays. Take the Soft Drinks Industry Levy, the manufacturer may pay the taxman, but it’s those who consume Coke and Pepsi that bear the burden through higher prices.