Slash rates to save the high street says retail review

The review by former Iceland and Wickes chief executive Bill Grimsey calls for an immediate reintroduction of the 2015 business rates revaluation to realign property values so thousands of small businesses “have a fighting chance of survival”.

Mr Grimsey said: “During our review we’ve discovered that thousands of small businesses are at risk of failure and over 50 per cent of local authorities who responded to a freedom of information request had no town centre plan of any description.

“Business rates came up all the time and when you meet small traders who are paying more than double their rent in business rates, then you realise this is an unfair tax that is completely out of touch with property values.”

He added: “Young entrepreneurs are more likely to set up an online business than a bricks and mortar one on a high street because the overheads are too prohibitive.

“We cannot rely on major chains to keep the high street alive. They are consolidating their store portfolios and shifting their attention to online and out-of-town retailing. We need new ventures to fill the gaps and the tax system has to support this transition.”

Mr Grimsey’s review makes 31 recommendations to Government in an “alternative” review to that by retail guru Mary Portas.

He wants to see a high streets minister and sets out plans for town centre commissions to bring together leisure, stores, health centres, education and housing.

Recommendations already reported include a one-off tax on major retail chains and leisure groups to fund regeneration.

The self-funded report presented at the House of Common yesterday says town centres should also offer two hours of free parking and freeze car parking charges.

The report concludes: “Many high streets up and down the country are dying. They need to embrace radical change if they’re going to have a future.

“The change we need to see must be driven by local communities, but supported by central government. This means ministers have to make business rates a fairer tax that doesn’t disproportionately burden smaller businesses.”