New research from Colliers suggests that going forward, UK High Streets are about to face drastic changes to the amount paid in business rates.
In a report by the BBC, it said that the property consultant discovered 76 of the main towns and shopping centres will have an increase in their rates bill, with certain parts of London suffering the most with a 400% increase.
The Midlands and north of England however, according to the report, will see bills drop substantially, along with Newport in south Wales that could see up to an 80% drop.
Ratings expert at Colliers International, John Webber, commented: “The business rates losers are found only in London and the South East and it could turn highly profitable stores, including independent retailers, into failing businesses.”
Colliers did their own research on the affect business rates would have on the retail sector and based the findings on rental data from 2010 to 2015.
Results vary greatly across the country. Marlow will see a 58% increase in rateable value, then Guildford will see 42% followed by Brighton which is up by 18.5%.
Rochdale in Greater Manchester, will see a 30% decrease, while Kidderminster in the West Midlands is down by 42%.
Meanwhile in London, Dover Street is the biggest sufferer with a 415% increase, followed by Brixton which has 128% increase in rateable value, while Ealing will see a 46% decrease.
Mr Webber continues: “Business rates is a major cost for retailers and it’s really important that they are able to budget for these once-in-a-generation changes.”
This year alone, business rates are expected to raise around £28bn for the Treasury’s coffers, more than the sum it raises in council tax. Retailers pay more than any other sector, with a quarter of the bill and they are demanding wholesale change.
The Government has promised to review the current system and present its findings by next year’s budget.
