Toys R Us burdened with £17m business rates bill due to rates revaluation delay

 
Helen Cahill
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Toys 'R' Us Files For Bankruptcy
The revaluation delay saddled many firms with high business rates bills (Source: Getty)

Embattled retailer Toys R Us could have saved £17m in business rates if the government hadn't delayed its revaluation of rates, according to analysis published today.

Toys R Us employs around 3,200 people in the UK, however, it is thought that the retailer could soon announce the closure of a quarter of its stores, leading to the loss of hundreds of jobs.

Read more: Nightmare of business rates eased as Hammond announces raft of changes

According to analysis by Colliers International, the toy retailer could have saved millions if the government had revaluated business rates in 2015, rather than two years later.

John Webber, head of business rating at Colliers International, said: "The current business rates regime has done nothing to stimulate healthy retailers and only seems to be adding to the problem. Given the uncertainty of Brexit, along with rises in the national living wage, apprenticeship levy and the fall in sterling, many retail businesses are feeling increasingly vulnerable.

"The government needs to be more supportive of retail and properly reform the system now."

It has also emerged that Toys R Us waived over £580m in loans to a firm in the British Virgin Islands, TRU (BVI) Finance 11 Ltd. Toys R Us' accounts at Companies House show its UK holding company made a loss of £673m in the year ended 28 January.

In the accounts, Toys R Us said it waived the loan to TRU (BVI) Finance 11 Ltd "as part of a group reorganisation".

Toys R Us has been contacted for comment.

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