Mike Ashley’s retail company Frasers Group has joined a growing list of retailers urging the Government to make changes to business rates in the Budget.
Yesterday bosses from 52 big High Street names, including Greggs, Fenwick, Ann Summer and Marks & Spencer, sent a letter to ministers, coordinated by the British Retail Consortium, calling for changes to be made.
The growing Frasers Group, which includes Sports Direct, House of Fraser and Flannels among its brands, has now backed the campaign, saying the “transitional relief” rules were particularly onerous and demanded a complete overhaul.
Transitional relief is supposed to help businesses not be overburdened with their rates bills soaring following a revaluation of the amount due.
Limits are in place to help those who are underpaying stagger the upwards transition to a higher bill, funded by overpayers slowing the speed at which their lower bill is introduced.
But retailers are angry that lower bills are not cut quicker, due to the transition.
The letter also argues that companies outside London are subsidising the capital – despite spending in the South East remaining relatively stable.
Frasers said: “Transitional relief in particular is disastrous for a great many retailers and needs to be significantly modified to at least ensure the correct amount of rates are paid by the end of transitional relief periods.
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“The current system whereby downward transitions of just a few per cent a year means that the correct amount is never reached, or even close to, punishes those in greatest need of relief.
“This kind of pattern clearly cannot be right and is no doubt repeated widely across 海角视频 retail; it is a significant contributor to the dire straits the high street currently finds itself in.”
Mr Ashley’s business added some stores pay up to four times the rates bills they should be.
Staff at its Birkenhead branch also face an uncertain future after “Closing Down Sale” posters appeared on the windows of the store, which was given a stay of execution when it was first acquired by Mike Ashley.
Frasers Group’s comments come as the 52 retailers said transitional relief has seen the industry forced to subsidise others to the tune of £543m over the last three years – however, the letter was sent to Sajid Javid in his role as Chancellor - which he quit yesterday.
Helen Dickinson, chief executive of the British Retail Consortium, which organised the letter, said: “It is essential our new Chancellor makes good on the Government’s pledge to reform this broken system.
“Swift action at the upcoming Budget would show the Chancellor was serious about levelling up all parts of the 海角视频 and supporting a retail industry towards realising a brighter future.”