Four in Five UK Retailers Expect to Close Stores if Business Rates Remain Unchanged
20 September 2021 - 10:25AM
Dow Jones News
By Sabela Ojea
The British Retail Consortium on Monday warned that four in five
retailers will have to close stores in the U.K. due to the effects
of business rates.
The BRC said in its latest report that it found 83% retailers
deem it "likely," "very likely" or "certain" that they will close
shops if the business rates burden isn't reduced as a result of the
fundamental review announuced in 2020, which will report back this
autumn.
The consortium said it advises the U.K. government to cut the
multiplier to its original rate of 35 pence (48 cents) in the
pound.
Business rates rose from 34.8 pence in the pound in 1990, when
they were first introduced, to 51.2 pence in the pound in 2020, it
said.
"This report underscores the urgency of fixing the broken
business rates system, which currently hold back new jobs and
investment...Furthermore, Government should introduce an
improvement relief to prevent stores being immediately punished for
investment into their property," BRC Chief Executive Helen
Dickinson said.
Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix
(END) Dow Jones Newswires
September 20, 2021 05:10 ET (09:10 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.