Britain’s big 4 supermarkets are set for a huge tax reduction on their largest stores next year thanks to the Government’s delayed revaluation of business rates.
Tesco, Sainsbury’s, Asda, Morrisons and others are set to see their rateable values- what their properties are assessed at- for their superstores in England and Wales slashed next year by £173 million according to CVS, business rates specilaists.
This year, 2,172 superstores have been revalued at a collective £2.761billion in rateable value. This is compared to £2.934billion from the 2010 assessment which has formed how much these supermarkets have paid in business rates for the last 7 years.
The average superstore will see its rateable value fall by 5.9%, or £79,368 and the Government has indicated that the multiplier will also fall by 3.4% reducing by 1.7p. But the proposals for transitional rates relief, which limits big increases and decreases in rates, could effectively cap reductions at 4.1% for these stores.
Mark Rigby, CEO CVS, business rates specialists said:
“There’s no doubt that the new Rating List will be welcome news for Britain’s largest supermarkets.
“Falling shop prices are causing enormous cost pressures for retailers. There is no doubt that had the revaluation not been delayed by two years, the Big 4 would have been hit hard. With the loss of market share and the proliferation of new stores by the discounters, undoubtedly, this will be good news.
“However, the Government’s proposals for transitional rates relief mean that those businesses expecting lower bills will only get those savings gradually – so firms will have to wait even longer for their long-awaited relief.”
CVS discussed this is more detail in Retail Gazette, Retail Week, and The Business Desk.
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