A group of leading retail figures have called on the government to freeze business rates in order to encourage investment and protect jobs in the sector. The plea was made in a letter published in the Financial Times on Monday. The 14 signatories include the director-general of the British Retail Consortium (BRC) Stephen Robertson, Asda’s chief executive Andy Clarke and the chairman of the John Lewis Partnership Charlie Mayfield.
This April’s rise in business rates cost the sector an estimated £350 million, the BRC claims. They now fear that the next multiplier, which will be set in the spring, could cost shopkeepers a further £200 million during 2013.
“We have seen a whole range of retailers close their doors, shut shops or lay people off,” Stephen Robertson said. “Right now we should be saying: enough.”
The multiplier or uniform business rate reflects the level of inflation and is set by the Department for Communities and Local Government in all areas of England – apart from the City of London which sets its own multiplier. In Wales the figure is set by the Welsh Assembly while Scotland operates a different system of business rates.
The letter says that the retail sector already pays the largest share of business rates and that another steep rise, in the current economic climate, would hinder investment and job creation. It also warns that it would lead to more empty shops on our high streets.
It continues; “We urge the government to recognize that retail has already given more than its fair share to the exchequer and to freeze business rates in 2013.
“It should also act on its commitment to review the mechanism by which rates are increased, to ensure a fairer and more sustainable formula for the future.”
Mr Robertson added that he had been told by the chief executive of a retailer that he went to view a property only to discover that the business rates were more expensive than the rent. “We are coming to a pretty pass when rates are eclipsing rent,” he said.
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