BRC: Gov’t must review “broken” business rates as 6,000 shops lost
The Government must review the business rates system to save shops and prevent closures, the British Retail Consortium (BRC) has said.
This BRC Local Data Company (LDC) Vacancy Monitor revealed that Britain has lost 6,000 storefronts within the last five years.
The BRC chief executive Helen Dickinson blamed “crippling” business rates and COVID lockdowns as key reasons behind store closures and a lack of new openings.
“To inject more vibrancy into high streets and town centres, and prevent further store closures, the Government should review the broken business rates system”, she added.
The monitor overall also found the overall vacancy rate had increased to 13.9% across Britain in the second quarter of this year, down 0.1% on the first quarter but up 0.1% on the same period in 2022.
The number of shopping centre vacancies has not changed from the first quarter, at 17.8%, however high street vacancies increased 0.1% to 13.9%.
Greater London, the South East, and the East of England again had the lowest levels of vacancies, with London showing an improvement due to flagship store openings, more tourism, and more office workers.
The North East and the Midlands saw the highest vacancy rates, followed by Wales and Scotland.
Helen Dickinson said: “The Government announcement earlier in the week about making changes of use to vacant units easier is welcome but it’s important local councils have a cohesive plan, and don’t leave gap-toothed high streets that are no longer a customer destination and risk becoming inviable. Government should go one step further and freeze [business] rates bills next year.”
Lucy Stainton, commercial director at the LDC, added: “Across all location types, vacancy has reached critical levels, highlighting an ever-increasing need to redevelop units to breathe life back into retail destinations.
“With the continuing trend in mind, we do not foresee any improvements to vacancy rate in future. However, given that the latest rises in vacancy have not been particularly significant, we anticipate that any increases in the near future will be gradual.”