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'17,000 shops at risk of closure' with current business rate system

'17,000 shops at risk of closure' with current business rate system
(Photo by JUSTIN TALLIS/AFP via Getty Images)
AFP via Getty Images

More than 17,000 shops are at risk of closure over the next decade unless the Labour government overhauls the business rates regime, supermarket Sainsbury’s boss and the general secretary of the biggest retail union have warned.

Simon Roberts, the chief executive of Sainsbury’s, and Paddy Lillis, the general secretary of the Union of Shop, Distributive and Allied Workers, have called on the Labour government to do away with "outmoded business rates" system.


"Retail has been transformed over the past ten years, with online sales tripling to 27 per cent of total retail sales last year. But the business rates system is unchanged, reflecting an era when virtually all shopping was done in stores. This is why since 2018 more than 6,000 stores have closed, from small independent retailers to decades-long household names. Two thirds of closed stores cite business rates as a key factor in shutting up shop."

Writing for The Times, Roberts and Lillis further added that a headline cut to business rates of 20 per cent could safeguard and create more than 17,000 jobs and deliver an extra £70 million per annum to the Treasury after ten years.

"It could also boost GVA (gross value added) — the value of the goods and services produced, minus the value of the intermediate inputs that were used to produce those goods and services — by £400 million per year.

"A 20 per cent cut to business rates would create jobs, protect government funding and unlock the much-needed growth we all want to see," wrote the two retail figures.

Supporting the 20 per cent cut, a recent research by Development Economics states that a headline rate cut of such a magnitude would initially reduce tax revenues for the Treasury, but after ten years, the corresponding increase in economic activity would generate net positive returns of £70 million per year for the government.

Labour Party had promised in its election manifesto that if it comes to power, it will overhaul the business rates system to create a more level playing field between digital and bricks-and-mortar retailers as digital retailers often have lower business rate bills owing to their minimal property footprint.

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Indies: It’s criminal police and government turn blind eye to shoplifting

Independent retailers are demanding tougher police action, more bobbies on the beat and harsher punishments as shoplifting levels reach an all-time high, a new survey reveals.

A whopping ninety-one per cent of respondents to a survey conducted by the Federation of Independent Retailers (the Fed) called for more police patrols on streets, while a similar number - 90 per cent - said that shoplifters should be handed harsher sentences.

Seven out of 10 respondents (72 per cent) said their stores had experienced shoplifting, break ins and damage to property, while they and their staff had been physically or verbally threatened.

Just under half of respondents (47 per cent) said they and their employees had been threatened or had suffered abuse and violence when asking for proof of age ahead of selling an age-restricted product.

Forty-four per cent reported that they and their staff had faced abuse or violence because they had refused to make a proxy sale – selling an age restricted product to a customer buying for a minor.

The results of the Fed’s survey came as new figures from the Office of National Statistics revealed that shoplifting was at a record high, with almost half a million offences recorded last year.

According to the ONS, 469,788 offences were logged by forces in the year to June 2024 – a 29 per cent increase on the previous 12 months.

The ONS added that this figure was the highest since records began – in March 2003.

“Inadequate responses from the police and a slap on the wrist for offenders means that shoplifting is soaring, and offenders are becoming more aggressive and brazen,” said Fed National President Mo Razzaq.

“From the responses we received, it is clear that real action is needed by police, by courts and by the government to stem the overwhelming tide of crime against retailers and their staff. Everyone deserves to feel safe at work and for their businesses to be protected against criminals.

“Fed members are also sending a clear message that one of the catalysts for verbal and physical abuse in stores is asking for proof of age before selling an age restricted product. If the government presses ahead with its plans to phase out smoking and vaping through a progressive ban to gradually end the sale of tobacco products across the country, independent retailers will be subject to even greater levels of violence, abuse and theft.”

Calling for action from the government and not just words, Mr Razzaq continued: “Without effective deterrent, criminals and opportunistic members of the public will continue to commit crimes.”

According to Ministry of Justice statistics, during the year to March 2024, 431 fines were handed out for retail theft under £100, while Home Office statistics for the same period show that 2,252 cautions were accepted for shoplifting.

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