650k retail jobs lost in the past five years amid fears of unfair high street tax bills ahead
Some 650,000 retail jobs have been lost in the past five years, as the high street comes under threat once more with consumer spending dropping amid historic inflation.
The Centre for Retail Research has found that some 645,204 retail jobs have been lost and 72,580 stores closed across the UK since 2017.
High street heavyweights to slash jobs during Covid lockdowns include Debenhams and brands under Sir Philip Green’s Arcadia Group, such as Topshop and Dorothy Perkins.
More recently, brands such as TM Lewin and Missguided have seen hefty job losses.
Real estate adviser Altus Group has urged the government not to usher in large tax increases next year, with a consultation currently underway into arrangements for the 20223 business rates revaluation in England.
Rates liabilities are calculated based on a property’s rateable value, which will be the open market rental value (as of 1 April 2021), as estimated by the Valuation Office Agency.
Robert Hayton, Altus UK president, said previous limits on reductions in bills had represented “robbing Peter to pay Paul”.
Under the scheme introduced in 2017, firms would have been denied £1.28bn in tax reductions, had it not been for pandemic support relating to rates.
Regions like the North West and Yorkshire & Humber would have been denied £611m and £468m in reduced bills.
Many high streets have seen rents significantly drop during the pandemic. However, Hayton said it would be “foolhardy” to take from those areas that have struggled.
“[The ] phasing in of large tax rises is undoubtedly a good thing. It acts as an important shock absorber and gives business time to adjust but this must be funded in a different way,” Hayton added.
What’s more, there were concerns of “Wakefield subsidising Westminster,” he added.