// The government needs to fix the current transitional relief for business rates, BRC urges
// Frasers Group boss Michael Murray calls for drastic action to keep high streets alive
The government’s ‘failure’ to fix the current transitional relief for business rates will cost retailers £1 billion, as Frasers Group boss Michael Murray calls for drastic action.
The BRC expects transitional relief to cost retail £1 billion between 2023 and 2026, with the sector forcing businesses in “poorer parts of the country, where rents are dropping, to subsidise those in richer areas, where rents are rising”.
Frasers Group boss Michael Murray has urged the government to take action on business rates as the high street needs investment to survive, Retail Week reported.
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“There is only so much we can talk about and publicly acknowledge that rates need addressing but nothing yet has happened,” Murray said.
“We hope that, in April, it gets reviewed to a new sensible rate. We understand we need to pay some rates, but it needs to be reflective of the market conditions.”
BRC called for an end to the “downwards phasing” part of transitional relief on the final day of the government’s consultation on the scheme ahead of setting business rates revaluation for 2023.
BRC business and regulation director Tom Ironside said: “The business rates system is damaging our high streets and town centres by directly undermining store viability.
“The retail industry accounts for 5% of the economy yet is saddled with 25% of the total business rates bill.
“This is directly contributing to the loss of shops and jobs, particularly in many of the parts of the UK in need of ‘levelling up’ and putting additional pressure on prices.
“Transitional relief is a flawed system that could cost retailers over £1bn during the next three years, leaving them with no choice but to close those shops which are most impacted by artificially inflated rates bills.
“This is money that would be used to help address the cost of living or support the vitality of towns and cities around the UK. In the short run, the most impactful change that any new prime minister could make to reform business rates would be to scrap the ‘downwards phasing’ part of transitional relief.”
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