"There are approximately 4,000 large-format retail stores with a rateable value of over £500,000. Like all of retail, these stores are already under pressure by soaring employment costs, high taxes, and rising rates bills, which is why 1,000 such stores have closed over the last five years. New analysis by the British Retail Consortium (BRC) shows that 400 large-format stores are at risk of closure, if they are included in the Government's new business rates surtax on premises with a rateable value over £500,000."
"The retail industry accounts for 5% of the economy yet pays over 20% of all business rates bills. This load is keenly felt by large stores (those with a rateable value of over £500,000), which pay around a third of retail's total business rates bill. Given the small profit margins that exist across retail (around 2-4% for food), a significant rise in rates for large stores would force these shops to raise their prices, employ fewer people, or even close their doors entirely."
Approximately 4,000 large-format retail stores have a rateable value over £500,000 and face pressure from soaring employment costs, high taxes, and rising rates bills; 1,000 such stores closed in the past five years. New BRC analysis identifies 400 large-format stores at risk of closure if included in the Government's proposed business rates surtax for premises over £500,000. Retail contributes 5% of the economy but pays over 20% of business rates, with large stores covering around a third of retail's rates bill. Closures could force price rises, job cuts, reduced footfall for local businesses, and an estimated loss of up to 100,000 jobs and over £100 million a year in local council receipts. The Government plans a new permanent reduction in business rates for retail, hospitality and leisure funded by the new surtax.
Read at London Business News | Londonlovesbusiness.com
Unable to calculate read time
Collection
[
|
...
]