This website uses cookies to ensure you get the best experience. Please read our policies for more information.

10 Chartered Accountants

News

Boots, Asda and Specsavers push back against business rates
11 September 2019

Some of the UK’s top retail stores, including Asda and Boots, have joined the fight against spiralling business rates.

It comes after many leading retail bodies published a letter calling for the Chancellor of the Exchequer, Sajid Javid, to address tax rules to boost the UK high street.

The Association of Convenience Stores (ACS) joined the British Retail Consortium (BRC), the Booksellers Association, Asda, Boots, the Co-op, and Specsavers, among many others, in signing the letter.

According to the latest data, the retail sector accounts for 10 per cent of all business taxes and 25 per cent of all business rates despite accounting for just five per cent of the economy.

This has in part been attributed to business rates rising by more than 50 per cent since they were introduced in the 1990s, resulting in the UK having one of the highest commercial property taxes in the world.

Evidence also shows that a huge number of retailers are not able to keep on top of the spiralling rates. The most recent statistics show that retail unit vacancy rates have risen to 10.3 per cent – the highest rate in almost five years.

The retailers have now called on the Government to put business rates front and centre of future policy decisions to prevent the death of the British high street.

Addressing the major challenges posed, the letter makes four recommendations, summarised below:

  • A freeze in the business rates multiplier;
  • Fixing transitional relief, which currently forces many retailers to pay more than they should;
  • Introducing an ‘Improvement Relief’ for ratepayers;
  • Ensuring that the Valuation Office Agency is fully resourced to do its job.

Commenting on the letter, James Lowman, the Chief Executive of the ACS, said: “It’s a really outdated system, it’s designed for a time when there only was physical retail, and people doing business from physical premises. That has been changing for a long time.

“The biggest thing is the way it’s a disincentive to investment – so if you take a retail shop and you improve it, you put in things that are not just important to the business, but are probably important to that community, like CCTV, solar panels perhaps, bringing in a cash machine, that sees your business rates bills significantly increase.

“Now surely it should be the other way around. We should be encouraging and incentivising investment, rather than penalising businesses for it.”

Link: Enabling the Prime Minister’s economic package to boost local investment

Other recent news

Too many businesses falling into VAT traps
24 April 2025

VAT is complex, and too many businesses are making costly,…
Read more

900,000 sole traders pulled into MTD for ITSA
24 April 2025

The Government has confirmed that Making Tax Digital (MTD) for…
Read more

Labour introduces harsher penalties for late taxpayers
24 April 2025

The Chancellor’s Spring Statement introduced harsher penalties for late taxpayers…
Read more

Should you submit your tax return at the start of this tax year?
24 April 2025

Submitting your Self-Assessment tax return at the start of this…
Read more

Why capital allowances should be top of your to-do list this April
24 April 2025

The new financial year will see many of the proposed…
Read more

»

Case Studies