Business Rates Rise for Retailers

At the worst possible time for retailers, chancellor Alastair Darling is expected to raise business rates next month by more than £1billion. Despite cries from some of retail's heavyweights including Sir Philip Green to seek postponement or cancellation of the proposed 5% rate rise Darling is insisting that he has no plans to amend the proposal. With a clear hint at the recent bail-out plans for the UK car industry, Phil Wrigley, chairman of New Look points out that, "it is strange that the government is taking money from some industries and giving it away to others." Ultimately, in a rare moment of unity, the rates row may force both retailers and landlords to work together to pressure the government on this point. Landlords are furious that the government is making them pay business rates on an increasing number of empty properties. As an ominous footnote to the issue, Ian Cheshire, chief executive of B&Q's owner Kingfisher has stated, "This is not the time to be increasing the tax burden on retailers - the casualties will come next year." According to figures within a report by The Sunday Times, it is estimated that this year the government will get £24 billion in business rates and retailers will pay a quarter of that. Eyebrow raising!!