Government’s Decision Threatens High Street Survival
- Fraser Group warns of potential store closures due to business rates valuation delay
- Government delays next business rates valuation until 2023
- Stores paying rates based on 2015 values for two more years
- Frasers Group reviewing viability of stores in portfolio
- House of Fraser stores pay no rent but still lose money
- Business rates correction could save stores, asks Fraser Group
Mike Ashley’s Fraser Group has warned that it may be forced to close some stores due to the UK government’s decision to delay the next business rates valuation until 2023. The group, which includes Frasers Group fascias, is currently paying rates based on values from 2015 and will continue to do so for two more years. This has led to a review of the viability of stores within its portfolio. In its half-year results announced on December 16, 2019, Fraser Group highlighted that some House of Fraser stores pay no rent but still lose money. The company questions how the government can maintain an outdated business rates regime while promoting high street revival.
Factuality Level: 8
Factuality Justification: The article provides relevant information about Frasers Group’s concerns regarding the delay in business rates valuation and its potential impact on their stores. It also mentions the group’s communication with the Prime Minister and the issue of House of Fraser stores paying no rent but still losing money. The article is focused on the main topic without any unnecessary digressions or sensationalism.
Noise Level: 3
Noise Justification: The article provides relevant information about the impact of government’s decision on a specific business and raises concerns about the viability of some stores. However, it lacks in-depth analysis or exploration of broader implications for the industry or potential solutions.
Financial Relevance: Yes
Financial Markets Impacted: High Street retailers and commercial real estate market
Financial Rating Justification: The article discusses the impact of business rates on Frasers Group’s stores, which affects their financial viability and potentially leads to store closures. This has implications for the High Street retail sector and the commercial real estate market.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.
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