Retail rates cap slammed by BRC

Date: 18th November 2009

The British Retail Consortium (BRC) has strongly criticised a new government programme aimed at alleviating the expected rise in business rates for April 2010.

Under new plans from the Department for Communities and Local Government, a new cap on business rates for 2010/11 could be set as high as 12.5 per cent.

The BRC recommends a cap of 11 per cent - and points out that the government proposals will result in the retail sector paying around £6 billion of England's £23.5 billion rates revenue.

Tom Ironside, BRC director of business environment, also pointed out that the recession had increased financial pressures on the sector, meaning that future rate rises cause still more damage.

He added: "Retailers should be cushioned from the worst effects of revaluation on their business rates bills, especially in the first two years of the eventual recovery if they are to continue to maintain and create jobs.

"The Bank of England says the recovery will be long and hard. We don't know how recovery will progress."

A large majority of retail properties are subject to business rates.

However, some small shops are able to avoid the tax on account of their size.

Posted by Emma Clarke