Jim Hubbard Policy Adviser Local Government and High Streets British Retail Consortium

Transcription

1 Jim Hubbard Policy Adviser Local Government and High Streets British Retail Consortium

2 Represent 80% of the retail industry Spans large multiples, independents, high streets and out of town, from online to bricks and mortar, selling variety of goods Work with Government to ensure a competitive market, champion great careers and promote responsible retail s vital role in the community

3 Retail undergoing structural change Burden of business rates too high Devolution Revolution has been announced including further local retention, ability to reduce multiplier and introduce infrastructure supplement Implementation of devolution important i.e. rates reduction, redistribution method, role of LEPs, business engagement

4 Retail Sales Mix

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6 DCLG to announce new multiplier by September 2016 Little rental evidence exists due to fewer rental transactions taking place London property is strong compared to elsewhere outside the M25 (West End has seen huge increase) GL Hearn estimates RVs in the West End are expected to increase by 31%, London City/Midtown by 19%.

7 Removing small businesses below 12k RV Tapered relief for businesses 12-15k RV Small business rates multiplier applies to all properties up to 51k RV Switch to CPI indexation in 2020 More frequent revaluations Standardised billing across local authorities Portal linked to HMRC digital tax accounts

8 100% retention Ability to lower multiplier Infrastructure supplement across combined authority with elected mayors by % retention pilots announced for Manchester and Liverpool and further retention for Greater London Authority

9 1) Opportunity to reduce burden 2) Redistribution should be clarified 3) Reductions in rates are needed now, a delay will lead to fewer shops and jobs 4) Further fiscal powers may be required to reduce burden 5) Infrastructure supplement requires a business ballot, LEPs not adequate

10 Welcome ability for local government to reduce burden Business rates are among the highest commercial property taxes in the world UK tax on non-domestic immovable property is three times the OECD average

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13 It is unclear how tariff local authorities would be prevented from drastically cutting their business rates without harming top-up authorities For instance, Westminster Council raises far more in rates than it spends so how would those funds be used to assist other authorities across England?

14 The number of town centre shops declined from 149,000 in 1990 to 129,000 in 2014 and with over 60 per cent of leases up for renewal by 2017 The end of these leases presents retailers of all sizes with a choice of whether to close down unprofitable stores as their leases end

15 Source: BRC/Verdict

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17 Few if any authorities will be in the position to lower business rates without additional fiscal powers Few discretionary reliefs are being granted Section 47 discretionary rates relief have only been implemented by 39 out of 326 local billing authorities

18 It has been suggested LEPs would approve a supplement, but LEPs are not representative of the business community or necessarily aligned with combined authority boundaries We suggest a business ballot similar to that required for levies funding Business Improvement Districts (BIDs) across the country

19 Under resourced making it difficult to represent diverse range of views Only 7 out of 39 LEP boards have retail representation Not designed to be representative of the business community Some combined authority boundaries take little account of LEP boundaries

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22 Business ballot more robust method Used to fund 200+ BIDs Requirement for a straight majority support of all businesses participating in the ballot and the majority of RV is an acceptable approach Vast majority of BID ballots are successful these are not opposed by the business community where value can be clearly demonstrated

23 Retail undergoing structural change Burden of business rates too high Devolution Revolution has been announced including further local retention, ability to reduce multiplier and introduce infrastructure supplement Implementation of devolution important i.e. rates reduction, redistribution method, role of LEPs, business engagement