Sector passed over on rate relief

According to the Financial Times today the Treasury is poised to remove larger retailers from the top band of business rates, (those with an RV of over £500, 000)  following intense lobbying pressure from supermarkets, with Chancellor Rachel Reeves having met leaders from the sector recently. 

The Chancellor is said to be backing down “due to intense pressure from supermarkets” and “warnings that the increased burden will fuel higher food inflation”.

John Webber, Head of Business Rates at Colliers has long been a critic of the higher multiplier proposed for the larger retail stores, supermarkets and leisure/ hospitality businesses. He said: “If this comes to pass we applaud the U turn on food stores being hit with a 20% business rates premium, because the levy would have  added to food inflation- but it rather begs the question why is the government  not accepting that adding a 20% supplement to any business is inflationary?  It feels like those who shout loudest get listened to, rather than the government pursuing any considered strategy. Nothing has been mentioned about doing something similar for the larger hospitality and leisure businesses.

"If the Government had carried out an impact study at the outset it would not be now rowing back on a policy which will do nothing to level the playing field in the high street.”