C-stores ask for rate rise postponement

Thursday, 20 November 2008

Small retailers have asked the Chancellor Alistair Darling to postpone business rate rises planned for next year, because these could have a disastrous impact on business.

The Association of Convenience Stores said Darling should freeze rates at 2008 levels and not enforce an increase.

Public affairs director Shane Brennan argued that unless this action is taken, then a "substantial additional" burden will be placed on smaller retailers in the current financial climate.

He said: "Freezing business rates will provide a boost to tens of thousands of retail businesses and provide exactly the right kind of stimulus."

The outcome of the revaluation of rents should also be rethought, Brennan said, because the property market has changed for the worse in the last few months.

Earlier this week, the British Retail Consortium made a similar plea.

Brennan commented: "The 2010 revaluation will be based on figures that were assessed at the very top of the property market, given the subsequent dramatic declines it is unrealistic and dangerous to push ahead and impose these new rates on businesses."

Business rates are based on the rate of inflation as shown on the Retail Price Index in September of the previous year.

Sir Terry Leahy has also called for a delay in rates revaluation.

Should rate rises be postponed? Will this have a positive impact? Make a comment below.