Chancellor Philip Hammond to announce £1.5bn boost to struggling UK high streets
The Chancellor Philip Hammond is set to unveil a £1.5bn boost to the UK's struggling high streets in his Budget on Monday.
In his speech Hammond is expected to announce £900m of immediate business rates relief on top of a £650m fund to “transform” high streets up and down the country.
Around 500,000 small retailers are set to benefit from the business rates relief that could wipe a third off their bill – in a bid to put a stop to the growing number of closures around the country.
Earlier this week Debenhams revealed plans to increase its store closures to 50 as it posted a near-£500m loss.
The collapse of House of Fraser and many more businesses closing shops in towns and cities across the UK has painted a bleak picture in recent months.
The Chancellor's rescue package of £650m will support local areas to redevelop under-used retail space into homes and offices.
Hammond is also expected to relax planning rules to boost mixed-used businesses and bring historic buildings back into use.
The Confederation of British Industry (CBI) said the relief would be welcomed by many small firms but called for a “wholescale review” of the business rate system to relieve the pressure on high streets.
CBI chief economist Rain Newton-Smith said: “The roots of the problem go far deeper though, with business rates giving larger retailers serious headaches, alongside manufacturers and logistics firms.”