By Sabela Ojea
The British Retail Consortium on Monday warned that four in five retailers will have to close stores in the U.K. due to the effects of business rates.
The BRC said in its latest report that it found 83% retailers deem it "likely," "very likely" or "certain" that they will close shops if the business rates burden isn't reduced as a result of the fundamental review announuced in 2020, which will report back this autumn.
The consortium said it advises the U.K. government to cut the multiplier to its original rate of 35 pence (48 cents) in the pound.
Business rates rose from 34.8 pence in the pound in 1990, when they were first introduced, to 51.2 pence in the pound in 2020, it said.
"This report underscores the urgency of fixing the broken business rates system, which currently hold back new jobs and investment...Furthermore, Government should introduce an improvement relief to prevent stores being immediately punished for investment into their property," BRC Chief Executive Helen Dickinson said.
Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix
(END) Dow Jones Newswires
09-20-21 0510ET
