Government to challenge £300m cash machine ruling

The Supreme Court has said politicians can challenge the Court of Appeal’s decision last year, which ruled in favour of grocery giants including Tesco, Sainsbury’s and the Co-op.

It meant the retailers stood to be reimbursed with around £300m in business rates they had previously paid on their ATMs.

Last November’s ruling, which was welcomed by the British Retail Consortium, could have paved the way for other retailers to claim back millions of pounds in backdated rates refunds.

The Court of Appeal said at the time that the government should not be allowed to challenge its decision.  

However, the legal wrange is set to continue after the Supreme Court said the government’s Valuation Office Agency (VAO) can lodge an appeal of its own.

The VAO originally won the case in 2013, when judges ruled that separate business rates should be charged on cash machines that had not previously impacted a store’s business rates bill.

The Supreme Court’s decision to open the door to a new appeal from the VOA was dubbed “a kick in the teeth for retail” by property consultancy Colliers International.

It added that the move could lead to retailers removing ATMs from their shops.

Colliers International head of business rates John Webber said: “Not only is this an enormous waste of tax payers’ money to allow the case to roll on, but it could snatch away from hard-pressed retailers the much-needed refunds they have been waiting for in this period of economic uncertainty.

“At the very least it will delay them receiving anything for another two to three years and that’s only if they are successful.”