One in eight town centre shops standing empty as retailers struggle with tax hikes

Published 23rd Jul 2009

One in eight town centre shops is vacant, three times more than last autumn, a report reveals.

The British Retail Consortium found that the picture was even bleaker in some parts of the North, where up to 40 per cent of premises stand empty.

The industry body said struggling retailers needed a rates freeze and relief from taxes levied on empty properties.
Shops stand empty

Traders have been hit by tax rises of up to £4,000 in the last year alone, according to the Federation of Small Businesses.

Business rates, which were introduced in 1990 to fund local services, are calculated using the rentable value of the premises.

Traders say however that valuations based on 2008 levels are unrealistic and have led to rises well ahead of inflation.

The Government has agreed to stagger the latest increase but businesses will still see rates rise by 5 per cent by 2012.

Last night, business groups said punishing rates were contributing to a 'perfect storm' of problems for retailers.

Phil McCabe, of the Forum of Private Business, said: 'The impact could be devastating for small shops struggling with a host of issues, including rising costs, falling sales and severe credit restrictions.

Source: ' Daily Mail '

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