Print

Lower property costs, beg retailers

Catherine Deshayes

The British Retail Consortium (BRC) has made clear its wishes that the Chancellor lower retailer's price pressures by pushing down commercial property costs.

As Alistair Darling begins to draft his pre-budget report, the BRC has submitted a six-point plan in a bid to help raise awareness of the pressures facing retailers as the trading climate toughens.

The BRC is writing to Alistair Darling ahead of the report, asking for him to help in its fight to lower commercial property costs including the re-introduction of empty property relief, which was abolished in April.

It is also calling for the urgent review of the tax treatment of unfair lease conditions where retail tenants have to pay large exit fees when surrendering leases early, but do not qualify for tax relief on these payments.

An extension of local tax raising powers, such as Business Rate Supplements, until the full consequences of these revenue raising measures are properly understood, is also on the cards.

BRC Director General, Stephen Robertson, said, "Retailers are being hit by a double-whammy of a deepening economic slowdown and a range of higher property costs.

"The Government should alleviate the increase in retail property costs by bringing back empty property rate relief and allowing retailers tax relief on the large exit fees they pay when surrendering leases early," Mr Robertson added.

Encouraging employment and cuts in basic household bills are other items that the BRC are hoping they can encourage the Chancellor to introduce.