Tesco boss blames business rates for retail chaos
Tesco boss Dave Lewis has joined the outcry against business rates, blaming the system for the carnage on the high street.
He said that the tax was partly responsible for the collapse of some retailers, and that it had created an "uneven playing field".
"Are we allowing it to stay competitive, or are we by stealth lowering corporation tax and increasing business rates to a place which is creating an uneven playing field and forcing people to think about how it is they avoid that cost and find other routes to the market?" he said to the BBC.
His comments come after another day of retail woes, with a total of 11,500 jobs at risk due to House of Fraser's plans to close more than half of its stores and the news that Poundworld is to appoint administrators.
House of Fraser's large stores have been subject to some staggering business rates rises.
Robert Hayton, Head of U.K. Business Rates at Real Estate Advisor, Altus Group, said: "The proposed CVA, if approved, would see the overall Rateable Value used for property taxes on stores in England and Wales fall from £59.50m to £32.23m until the next revaluation in 2021 reducing tax liabilities this year for business rates from £30.24m to £16.02m on a full year basis.”
Read more: London's small firms hit with £8.2bn business rates bill