Hammond confirms business rate relief for small firms as the high street faces pressure ‘as never before’
Chancellor Philip Hammond has confirmed his plans to inject £1.5bn into Britain’s high streets in today’s budget.
In a new spending package aimed at boosting small town retailers and high street firms, Hammond has announced business rates relief for firms with a rateable value of less than £50,000 will be cut by a third.
The chancellor said: “The high street lies at the heart of many communities and it is under pressure as never before…if Britain’s high streets are to remain at the centre of community life, they will need to adapt. Today, we support them to do so.
Yet scepticism over the chancellor’s plans have lingered within the retail sector, as industry experts questioned how the new policy would be funded and what measures would be put in place to help ease the burdens on the UK’s larger retailers.
David Young, a partner in Eversheds Sutherland’s consumer team, said: “Such a step would of course be hugely welcome. However, alone, these measures offer only modest help to small retailers and will not arrest the decline of the traditional high street. The high street needs successful larger retailers too, enlightened town planning policies and engaged consumers. Innovation, imagination and intervention in equal measure. It is difficult to be optimistic.”
The calls to help the country’s bigger high street names comes in the wake of several high-profile insolvencies and closure announcements over the summer, as higher costs and competitions from e-commerce firms weighs on margins.
Last week Debenhams reported losses nearing £500m and as many as 50 planned store closures over the next five years.
According to the Local Data Company, the UK’s high streets suffered almost 5,855 store closures in 2017, the highest of any year since 2013.