Chancellor misses 'golden opportunity ' to tackle business rates - Colliers

Chancellor Rishi Sunak missed a “golden opportunity ” to tackle business rates reform or a business rates holiday for retail, hospitality and leisure sectors.

That 's the view of John Webber (pictured), head of business rates at Colliers International, speaking after Mr Sunak made the update in the House of Commons this, where he told MPs that the economy will “get worse before it gets better ”.

Research from the British Chamber of Commerce suggested that the restrictions caused by the latest national lockdown will lead the country on course for a double-dip recession in the first quarter of 2021.

And the Federation of Small Businesses has said at least 250,000 UK small businesses are set to fold without further help from the government.

Mr Webber said: “We are in dire times and the Chancellor did not deny this. Our economy has shrunk 6.1 per cent from before the crisis and 800,000 jobs have been lost since February. And the Chancellor spelled out that it will get worse before it gets better. ”

Mr Webber said that one area the Chancellor seems determined to ignore are business rates payments still hanging over heads of the distressed retail, hospitality and leisure sectors.

Businesses in the sector are expected to pay around £12 billion in business rates from April if there is no extension of the current rates holiday.

Colliers estimate that non-essential retail and the restaurant and hospitality sector, currently closed due to lockdown, will need to find around £10 billion to meet their business rates liabilities from the end of March.

Mr Webber says that this is “totally infeasible ” for many businesses.

He added: “The Government 's latest grant schemes, are all very well, but we are hearing that to some extent they are a post code lottery- with some boroughs processing grants at much greater speeds to others- and some local authorities have not even started yet.

“The position on State Aid restrictions has also not been confirmed, so many businesses are unsure of what they can claim and are still missing out.

“Whilst we welcome the financial support for businesses through the grants system - essential given the latest lockdown- we ask the Chancellor for some clarity going forward- both in terms of State Aid restrictions and business rates reliefs post March 2021, particularly for the struggling retail, hospitality and leisure sectors. It is disappointing that yet again he has missed a golden opportunity to tackle this issue and has put his head in the sand that all will be OK in the Spring. ”