Some of Great Britain's largest stores, including supermarkets and department stores, face a new wave of closures if the government forces them to their higher commercial rate tax band, industry leaders have warned.
The British Retail Consortium (BRC) said that its latest analysis suggested that 400 large -format stores ran the closing risk if included in the new commercial rates of the government sounds in premises with a appraisable value of more than £ 500,000.
The BRC said “Like all retail trade,” these stores were already under pressure for the high employment costs, high taxes and increased tariff invoices, promoting the closure of 1,000 of these points of sale in the last five years.
He said the retail industry represented 5% of the economy, but paid more than 20% of all commercial tariff invoices, with large stores that paid around a third of the total invoice.
Given the small profit margins that existed in retail trade, from around 2% to 4% for food, a significant increase in rates for large stores would force these stores to raise their prices, use less people or even close its doors completely, warned the BR.
The 4,000 large stores played a vital role in the economy by using approximately one in three of the three million industry workers and, as an anchor tenants, they attracted footsteps to the purchasing and leisure areas, supporting smaller coffee shops, pubs and independents around it, he added.
He estimated that if the 400 risk risk stores were closed, up to 100,000 jobs could be lost and the commercial tariffs of the local retail councils would fall on “more than” £ 100 million a year.
The BRC is asking the Chancellor to use the fall budget to deliver “without simply changing the cost to the largest stores, which would be harmful to our secondary streets.”
He suggested that this could be done at no cost to the public bag by eliminating those stores from the new tax band of higher commercial rates and slightly increase the rates that the large remaining properties will pay, such as the offices of offices and other large commercial buildings, where commercial rates were a majority of the costs and the impact of the work and prices was lower.
The executive director of BRC, Helen Dickinson, said: “The largest stores in Great Britain are magnets, they attract people to high streets, shopping centers and retail parks, supporting thousands of coffees, restaurants and smaller and more independent stores.
“After years of growing costs, too many stores have disappeared, leaving with empty layers that once prospered in the heart of our communities. Four hundred larger stores could disappear if the government forces them to their new highest tax band. This would mean up to 100,000 lost jobs, more empty high streets and less income for the exchange.
“The chancellor can support families, jobs and the main streets this fall, excluding large stores from the new higher commercial taifics band. This would not cost a penny to the treasure, but it would help to ensure the future of 400 retail stores and the communities that support, throughout the country.
“But breach of Act's risks closing hundreds of more stores, expensive jobs, communities and the economy much more in the long term.”
The BRC warning follows the chancellor that reveals plans to consider the reforms of commercial rates, including the elimination of “cliff edges” for small businesses.
The Treasury is analyzing changes in the current commercial tariff system, the United Kingdom commercial properties tax, as part of efforts to reduce bureaucracy and improve growth.
In an initial report on commercial rates, the Treasury said it would consider reviewing the rules of relief of small businesses that “can discourage” expansion and investment.
It is understood that the leaders of the main street companies, such as John Lewis, met with Foreign Minister Rachel Reeves last week and encouraged a elimination of current commercial rates rules.
Companies saw the invoices of commercial rates increase earlier this year after an original 75% discount on tariff payments for hospitality, retail and leisure sale companies were reduced to 40% in April.
