Thousands of retailers in England have been left disappointed as they were unable to take advantage of promised discounts on their business rates bills. According to property specialists at Gerald Eve, only 272,000 out of 400,000 retailers, leisure establishments, and hospitality venues were able to claim a 50% discount on their commercial property tax, which was announced in the last budget. This means that 128,000 businesses missed out on the much-needed relief.
These findings have sparked calls on the government to ensure that any future support, especially in the upcoming mini-budget, is effectively targeted. The data, obtained through Freedom of Information requests to councils in England, provides insight into the number of businesses in each area that benefited from the rates relief. The relief was specifically provided to sectors heavily impacted by pandemic closures, with the aim of aiding the recovery of the high street.
The main reason for only two-thirds of businesses being able to access the 50% discount is the cap of £110,000 implemented by the former chancellor on the amount each business could receive, rather than each property. This limitation meant that retailers and hospitality operators with multiple sites could only benefit from the discount for their initial few properties. Gerald Eve has called on the government to extend the 50% discount to support businesses next year. If this support is not extended, retailers, as well as the leisure and hospitality sectors, can expect a significant increase of £1.7 billion in their business rates bills.
Jerry Schurder, the business rates policy lead at Gerald Eve, highlighting the importance of the new chancellor avoiding the mistakes of his predecessor when announcing support for businesses. While there is a significant focus on supporting businesses with soaring energy bills, it is equally crucial to prevent their business rates from soaring as well. The new Prime Minister expressed her desire to intervene in rate reforms, and it is now time for her to deliver on that promise.
This latest development highlights the challenges faced by retailers and businesses in the UK, particularly on the high street. The pandemic has already had a profound impact on the sector, forcing many businesses to temporarily or permanently close their doors. It is vital for the government to implement targeted and effective support measures to ensure the survival and growth of these businesses. The upcoming mini-budget presents an opportunity to provide relief and reassurance to struggling retailers and high street establishments across the country.
For more information on business rates and the impact on retailers, please visit link1. To learn about the upcoming mini-budget and its implications for businesses, click here: link2.
