Retail leaders criticise business rates reform

Retail bosses from M&S, Sainsbury’s and Currys have criticised the changes made to business rates, according to This is Money. 

According to the retailers, these changes will still leave high streets and shopping centres still facing high taxes, as the new business rates are charged on shops, pubs and other business properties based on their rental value. 

As a result, critics have said the system punishes retailers with a physical presence in town centres, while online-based traders face lower bills. 

This comes as the government promised a “fundamental” review, however businesses have already said changes so far are insufficient, warning that the tax is still “throttling local economies”. 

Blathnaid Bergin, the finance boss of Sainsbury’s, has stated that any changes that lower business rates would help lower prices and increase pay, while the government believes it has provided “generous” business rates support. 

In addition, the government said its reforms had helped level the playing field between bricks and mortar stores and online retail.

Stuart Machin, chief executive of M&S, said: “We welcomed the government freezing rates and ending the downward transition last year, but it’s time they take decisive action to protect the retail industry, create jobs, bring customers back and support communities.”

Alex Baldock, chief executive of Currys, said: “The system is outdated and punitive, and change is necessary to keep pace with a modern retail environment. We’d like to see the Government follow through on the promise of fundamental reform.” 

Helen Dickinson, chief executive of The British Retail Consortium, added: “The broken business rates system is a drag on investment, jobs and town centres.”