Newsagent boss fears a ‘bloodbath on high street’
‘THE GOVERNMENT HAS GOT TO EXTEND THE RATES HOLIDAY’
THE boss of a once-thriving Nottingham newsagent’s fears there could be a “bloodbath on the high street” if business rates return to normal after lockdown.
Mick Garton has previously spoken about the struggles his six shops are facing due to the pandemic, with many operating at a loss or bringing in as little as £50 per day.
Businesses were granted a 12-month rates holiday to help them during the pandemic.
But this expires at the end of March and there has been no announcement about what happens next in England.
As a result, Mr Garton fears even more damage to the high street, with most businesses already reeling having used all of their cash reserves in the past year.
He said: “We are just running at a massive loss.
“This time newsagents can stay open so unfortunately that means we have not got the help, so we are running at 20 percent of what we normally would be.
“We still have to pay the staff. It is horrendous. But what can you do?
“The big worry for a lot of businesses now is for when we relax things.
“[The Government] has got to extend the rates holiday. We cannot just reopen in April and the first thing businesses will get hit with is tax rises and rates to pay for it all. People have taken out loans. We cannot go back to normal. There is going to be a bloodbath.
“The closures will not come straight away. They will come when the bills kick in, so there has to be a grace period.”
Mr Garton’s concerns come as even more big-name brands disappear from the city’s high streets, from River Island in Lister Gate to Top Shop and Debenhams.
Explaining the issue further, Nottingham independent retail analyst Nelson Blackley added: “If there was one positive that the retail sector hoped might come from the unprecedented crisis for town centres and high streets caused by Covid-19 shutdowns, it was that it might prompt a long-awaited Government reform of business rates.
“However, almost a year since the first of several lockdowns which have closed all but ‘essential retailers’ across the UK, the situation is no clearer. Back in July, ministers postponed a property revaluation until April 2023, leaving retailers facing the prospect of paying business rates based on 2015 values.
“This means that retailers will be paying business rates bills based on pre-coronavirus property valuations until 2023.
“The Government’s failure to reform the £31 billion-a-year business rates system, a tax levied on commercial property occupiers, presents a major challenge for the UK retail sector. The Government plans to conclude its latest ‘fundamental review’ of business rates in the spring, but retailers need clarity now.”