Empty Rates Penalty Hinders Retail Recovery Efforts

  • Retail landlords charged nearly £1bn in rates on empty shops despite government support
  • Empty rates seen as a penalty to bring properties back into use quickly
  • Altus Group calls for modernization of empty rates system
  • Acquisition of Debenhams and Arcadia brands could lead to potential £50m and £91m in annual empty rates

Despite the UK government investing over £280bn in business support for sectors like retail, leisure, and hospitality during the pandemic, retail landlords have paid nearly £1bn to English Councils in business rates on empty shops. The holiday didn’t cover vacant properties, leaving them with tax liabilities of £924m this financial year. Altus Group suggests that the current system is outdated and needs modernization as part of the Treasury’s ‘fundamental review’. With 358 stores closing per week in 2021, landlords may face £50m for Debenhams and £91m for Arcadia Group stores’ empty rates if new tenants aren’t found.

Factuality Level: 7
Factuality Justification: The article provides accurate and objective information about the financial impact of the pandemic on retail landlords and the potential consequences for vacant properties. It cites research from Altus Group and includes relevant data and expert opinions. However, it could be improved by providing more context on the business rates system and the government’s support measures.
Noise Level: 3
Noise Justification: The article provides relevant information about the financial impact of the pandemic on retail landlords and the potential consequences for vacant properties. However, it could benefit from more in-depth analysis of the long-term trends and solutions to address the issue.
Financial Relevance: Yes
Financial Markets Impacted: English Councils, landlords, and retail sector
Financial Rating Justification: The article discusses financial implications for English Councils, landlords, and the retail sector due to business rates on vacant properties during the pandemic.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the last 48 hours.

Reported publicly: www.retailsector.co.uk