Business rates for High Street retailers should drop 35%, according to the head of one of the UK's largest retail chains, Next.Lord Simon Wolfson said if the government did not set rates at fair levels, many stores would need to close unnecessarily.He said that the current system It is "unfair" to brick-and-mortar retailers, many of whom are struggling in the epidemic.The Finance Ministry said it was working. "Basic review" of the system Wolfson the value of high street retail real estate dropped significantly in the wake of the crisis. “But the business rate billing doesn't reflect that.He uses his own experience at Next as an example.

In-store sales at xo Next have dropped 25% since 2015, but our rates on those properties have increased by 9%, which is unfair because they do not reflect the value of the property they charge. Longer He said some of the government's spending cuts in retail rates could be offset by hikes in warehouse and online operations. Their value has increased significantly as more and more retail goes from High Street to online.Store rents are down, warehouse rents have increased, and the rates don't justify the value of warehouse assets, so I think the government can fund some of that by raising the warehouse rate by about 50%. ".

'inhibit'

Wolfson is widely considered one of the UK's best retail operators and NEXT's major online business has helped the company face the onslaught of e-commerce in traditional retailers.Up next is one of the UK's 100 largest companies, the retailer problem is much more serious.Peter Budek opened the Eagle bookstore in Bedford.He took a big risk last year by moving into a newer, bigger building, so it will start paying business rates for the first time when the current holiday rate ends, which is currently slated for. April

He said the opportunity to pay rates almost stopped him from expanding and said the current system was hampering the growth of small companies.The business rate factor is huge. You go from paying very low or zero business rates in our previous small facility to being in heavy debt, and it almost disappointed me.And if we can remove that barrier, you're more likely to have a small independent business to become a larger independent business, so it is stamped in the city center so that each city can be unique and support a network of independent businesses." Small independent businesses Run with them

So what we have done here may give some incentives to other Bedford businesses to take it a step further. But the rate system will be suspended There are 30 billion reasons not to reform the system. That's the total amount the government charges (in pounds) on the business rate. But you can't tax dead businesses, and High Street in the UK is a bloody place in 2020.The Retail Research Center calculated that more than 175,000 jobs were lost as some of the most famous high street titles failed.Emergency outbreak measures have made businesses a lifeline as governments offer interest rate holidays. The holiday will end in six weeks. But although the Prime Minister extended that holiday at Budget on March 3,

urgent reform is needed to prevent long-term damage to our high streets, according to Lord Wolfson.I think we are at a pivotal point in the history of High Street… We have had a significant drop in retail property values ​​due to a drop in sales so far and many retailers are in the process of managing.For those companies, especially if they go into liquidation, whether their new owners decide to pick up and open them will depend on both the rent and the rates we have. Keep So in the next year or two, having a set rate at an economical and fair level will make a huge difference to the number of stores open in the short term, and it will be a shame for us." Many people The shops need to close unnecessarily because the prices are too high.

Lord Wolfson admits that cutting down the high street business rates while the increase in warehouses will have a prolonged impact on public finances. That's one reason why some people recommend having online sales taxes to level the playing field between physical retailers and online while filling out tax receipts.But that would be a mistake, according to Lord Wolfson.I am against online sales tax because consumers end up paying that price, and I really don't think anyone will go back to High Street because it has 2% or any amount of online tax. You can't tax people back on High Street.Online taxes will not keep people coming back but they will fill gaps in consumers' pockets.