STORY
Frasers Group founder Mike Ashley has described the Government’s plans to reform business rates as “delusional”, arguing that the proposals could place further pressure on larger retailers. In a letter to Prime Minister Andy Burnham, Ashley accused the Government of relying upon media announcements instead of addressing the costs affecting businesses and employment.
The Prime Minister has announced that pubs, clubs and live music venues in England will receive a 20 per cent reduction in business rates from April. The Government intends to fund the measure partly by reviewing reliefs for businesses it believes do not contribute positively to local communities and by increasing enforcement against online marketplaces that fail to meet their tax obligations.
Burnham has also suggested raising business rates on large warehouses used by online retailers while reducing the burden on high street businesses. Ashley said increasing taxes on larger retailers to support pubs and clubs was the wrong approach. Downing Street defended the plans, saying the Government wanted to build an economy which supported British businesses and made essential costs more affordable.