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BRC writing to ask Chancellor to help retailers through slowdown
The British Retail Consortium (BRC) is to write to the chancellor Alistair Darling ahead of the Pre-Budget Report today.
Its wish list includes asking the chancellor to reduce retailers’ price pressures including pushing down commercial property costs.
It has asked for the chancellor to reduce commercial property costs including the re-introduction of empty property relief, which was abolished in April and 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.
It also asking for an extension of local tax raising powers, such as Business Rate Supplements, until the full consequences of these revenue raising measures are properly understood.
Stephen Robertson, BRC director general, 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.’
As part of the letter, the BRC is also asking for help in encouraging employment, cuts in basic household bills.
This is against the backdrop of the BRC disputing the the Office for National Statistics' (ONS) finding that sales growth was higher in July than the previous month.
Stephen Robertson said: "Few retailers will recognise this positive picture. These ONS figures suggest July's total sales values were up 3.8 per cent on a year ago, well above the miserly 1.7 per cent shown by the BRC's figures. ONS say year-on-year growth was higher in July than June. Our Retail Sales Monitor shows it fell. ONS don't measure like-for-like sales but our figures show July sales down on a year ago.
"There is no evidence that fundamental conditions are improving for customers or retail businesses. Consumer confidence remains low, unemployment is rising and the housing market weakening. It's hard to see what could produce the sales-growth boost ONS are reporting or their finding that smaller retailers are outperforming larger ones.
"We respect the ONS's process but this report doesn't seem to reflect the current retail reality."
Its wish list includes asking the chancellor to reduce retailers’ price pressures including pushing down commercial property costs.
It has asked for the chancellor to reduce commercial property costs including the re-introduction of empty property relief, which was abolished in April and 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.
It also asking for an extension of local tax raising powers, such as Business Rate Supplements, until the full consequences of these revenue raising measures are properly understood.
Stephen Robertson, BRC director general, 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.’
As part of the letter, the BRC is also asking for help in encouraging employment, cuts in basic household bills.
This is against the backdrop of the BRC disputing the the Office for National Statistics' (ONS) finding that sales growth was higher in July than the previous month.
Stephen Robertson said: "Few retailers will recognise this positive picture. These ONS figures suggest July's total sales values were up 3.8 per cent on a year ago, well above the miserly 1.7 per cent shown by the BRC's figures. ONS say year-on-year growth was higher in July than June. Our Retail Sales Monitor shows it fell. ONS don't measure like-for-like sales but our figures show July sales down on a year ago.
"There is no evidence that fundamental conditions are improving for customers or retail businesses. Consumer confidence remains low, unemployment is rising and the housing market weakening. It's hard to see what could produce the sales-growth boost ONS are reporting or their finding that smaller retailers are outperforming larger ones.
"We respect the ONS's process but this report doesn't seem to reflect the current retail reality."
Thu, 21st Aug 2008