STORY: Business rate deferment sought for bakers

Many across the trade have criticised the government for effectively shutting down businesses across the UK without issuing any support.

Colliers International have called for the government to introduce a three-month or even six-month business rates deferment scheme to help businesses impacted by the coronavirus.

Following last Wednesday’s Budget, which was largely applauded for the support given to smaller retail, hospitality and leisure businesses, but criticised for the lack of support to any larger businesses, many medium and large businesses across the sector are calling for urgent action which they want and need to see now.

A three-month rates deferment scheme would mean that businesses are given a three-month period in which they would not need to pay their business rates, which would eventually be paid back as times improve. This could be extended to six months if needed. Because this will be paid back, according to Colliers such a scheme would not be subject to restrictive State Aid rules, as current government relief measures are. The government would need to plug the hole caused in local authority finances during this immediate period, but this would be repaid later.

“We are in constant dialogue with our clients, who are strong companies, but with footfall in retail centres ‘falling off a cliff’ and the hospitality sector seeing similar drops in trade, it is ridiculous that such large amounts of cash are being paid to the public purse when it could be used to safeguard jobs over the coming month,” says John Webber, head of business rates at Colliers International. “This three-month rate deferment would at least give businesses some breathing space to maintain their cash flow.”

In addition, Colliers says that if the impact of coronavirus continues, businesses should also be able to claim a ‘Material Change of Circumstance’ when appealing their business rates bills. Although these appeals would be dealt with normally over a lengthy period, the government could instruct the Valuation Office Agency to make immediate temporary reductions in the Rateable Value where footfall or turnover is impacted.

“If Boris Johnson wants to reassure business and the people employed by them that he is doing everything he can, then surely the above measures should be acted upon immediately,” adds Webber.