The report found that, when business rates are reassessed in 2010, retailers will be hit with an estimated 13.3 per cent increase. The report points out that the increase will add further woe to already burdened high street retailers that are facing rising rents, stagnant sales growth, increased wage inflation and the effects of the credit crunch.
GL Hearn director Blake Penfold said: “There will be both winners and losers when the next revaluation takes place. Our research suggests that the retail sector looks set to be one of the worst hit and it’s important for retailers to start to budget and prepare for the increases.”
By contrast, online retailers are set to benefit from the revaluation, because rates are forecast to decrease by 1.5 per cent for distribution warehouses.
In 2005/2006,£19.9 billion was collected in business rates, representing 4.35 per cent of the total tax income generated by the Government.
The BRC has hit out at rising business rates, pointing out that taxes are rising above the rate of inflation. It is also fighting the Government’s proposed changes to empty property rate relief.
Previously, the first three months a property lays empty were rate-free and, following that, half rates were due. The Government proposes to keep the ruling that empty property will be rate-free for three months but, after that, full rates will be due – even if the property remains empty.
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