Hospitality: Rates Surcharge Threatens High Street Closures
According to trade bodies UK Hospitality (UKH) and the British Retail Consortium (BRC), 500 high street retail premises will be at risk of closure if the planned business rates surcharge goes ahead.
The surcharge would impact 5,000 high street properties with a rateable value over £500,000, resulting in a higher tax rate. These properties currently employ 120,000 people across the UK.
While many businesses fall beneath this threshold, these larger premises attract footfall to the country's high streets, benefiting sites of all sizes.
The Government had set out to reform business rates to level the playing field for high street retailers, and Labour has legislated to reduce the business rates multiplier for retail, hospitality, and leisure (RHL).
Business rates are calculated as follows: multiplier (tax rate) x rateable value of a property.
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Author's summary: High street closures threatened by rates surcharge.