Mike Ashley’s Frasers Group has hit out at the government, saying it looks on with “anguish and bewilderment” at its decision to delay the next business rates revaluation until 2023.

The government announced earlier this week that the next business rates revaluation would take place in 2023, having postponed this year’s revaluation in May.

The next business rates revaluation is due to take effect in April 2023 and will be based on property values as of April 1, 2021 to properly reflect the impact of the coronavirus pandemic.

Frasers Group said this decision meant it would have to “carefully” review the viability of a number of stores across its portfolio.

“With the high street already in meltdown, Covid-19, the lockdown and its after-effects are now pulverising what remains. Yet the government stands aside and has buried its head in the sand on the critical business rates issue, raising unfair and uneconomic revenue sums from already distressed businesses.

“Not only has it has kicked the can down the road; it has also kicked businesses when they are clearly down.

“We expect that the government’s inaction will drive further stores and businesses on our high streets into closure, in the process costing many people their jobs and livelihoods.”

Frasers added: “Occupiers of the high street, including Frasers Group fascias, are still paying business rates based upon values from 2015 and the government has now decided that occupiers should continue to do so for an extra two years.

“These outdated 2015 values bear no correspondence to present-day values or trading conditions and the government is perfectly well aware of this.

“Yet the government will now have businesses wait a total of eight years before taking the necessary steps to align business rates with reality; even then, with the anticipated transitional arrangements we may never get there.

“As we noted in both our half-year results announced on December 16, 2019, and in subsequent correspondence to the prime minister, there are House of Fraser stores paying no rent but still losing money and a business rates correction could dramatically change the situation in terms of saving stores.

“However, with yesterday’s announcement, Frasers Group will again have to carefully review the viability of a number of stores within its portfolio.”

On Tuesday the government also launched a call for evidence as part of a wider review into the UK’s business rates system – seeking views on how it works and what could be changed.

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