22nd Jul 2020 15:44
(Alliance News) - Frasers Group PLC on Wednesday hit out at the UK government's decision to delay its next business rates review until 2023.
The Sports Direct owner, headed by Mike Ashley, said it is still paying business rates decided in 2015 and these now "bear no correspondence to present day values or trading conditions".
"The government is perfectly well aware of this. Yet the government will now have businesses wait a total of 8 years before taking the necessary steps to align business rates with reality; even then, with the anticipated transitional arrangements we may never get there," Frasers said.
"How many more businesses on the High Street have to disappear and jobs be lost before the government takes this issue seriously? How does the government reconcile its maintenance of a punitive and outdated business rates regime, with its predictable and devastating effect on the viability of bricks and mortar businesses, with its recent policy/stimulus decisions seeking to have customers return to our high streets?"
Frasers said that the "government's inaction" will force more high street stores into closure.
The warning from Frasers comes after retailers such as Debenhams, Laura Ashley and Cath Kidston have all sunk into administration.
Shares in the company were 1.1% lower at 283.60 pence each in London on Wednesday afternoon.
By Eric Cunha; [email protected]
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