Government U-turn on Business Rates Reforms to Protect High Streets
The Government has reviewed its stance on meta rates reforms, following concerns raised by the retail industry and the British Retail Consortium (BRC). The wholesale sector has also been significantly impacted by recent changes, according to a government official.
The BRC's chief executive, Helen Dickinson, has welcomed the Government's decision to reconsider its plans. She believes excluding shops from higher mortgage rates will protect both households and high streets. Initially, Labour had proposed increasing business rates for larger retailers, a move that could have driven up food prices and led to store closures, potentially threatening town centres.
Shadow Chancellor Rachel Reeves is now considering abandoning these plans. The retail industry is already grappling with an extra £7 billion in costs following last year's Budget. The wholesale industry, too, has been 'horrendously' affected by the reforms, as revealed to the Financial Times by a government official.
The Government's change of heart on business rates reforms is a relief for the retail sector. By potentially abandoning plans to increase rates for larger retailers, the Government aims to mitigate further price increases and store closures, thereby safeguarding high streets and town centres.
