Retail rates differences highlight increasing north-south divide

THE growing north-south economic divide has been highlighted by a survey of Britain’s high streets.

The study by the Local Data Company and Liverpool University indicates that business rates should be halved in many northern towns because retailers are facing tougher economic conditions there.

According to the study, which is based on official figures, all regions have experienced a decline in rental values since 2008.

Hide Ad
Hide Ad

The best performer is London with a drop of eight per cent, and the worst figures were recorded in the North West and North East, where rental values fell by 17 per cent.

There are large regional variations in rental values. For example, clothes and fashion rental values range from £586 per square metre in the heart of London to £83 per square metre in Cleethorpes.

Fashion and clothes shops have been hardest hit by the tough economic climate, according to the study.

Retail analyst Bill Grimsey said: “This research underlines the sharp rental falls that have been seen in high street retail, particularly in towns in the North that have struggled since 2008.

Hide Ad
Hide Ad

“Forcing towns like Rochdale to pay artificially high business rates based upon rateable values that are 40 per cent higher than their real value, for an additional two years, is inexcusable.

“This is no way to reverse a high street decline and will only make a bad situation worse.

Mr Grimsey added: “That is why, within our alternative high street review, we called for the immediate reinstatement of the 2015 revaluations to ensure fairness in tax liabilities.”