CVS: “lack of support creates toxic cocktail for business”

UK property specialist CVS warns that the lack of government’s

support for businesses “creates toxic cocktail”. The warning comes right after the Cameron’s executive announced that rates bills will continue to be based on 2008 property values until 2017.

Retailers are facing a bigger than expected hike in business rates after retail price index inflation fell from 2.9 percent to a higher-than-expected 2.6 percent, reported London press on Monday.

“Economic conditions are extremely tough out there,” says Mark Rigby, Chief Executive of CVS. “Extending the current charging regime until 2017 – nine years after rateable values were last measured – is unjustifiable and is simply heaping pain upon pain for businesses crying out for some respite from government. Low consumer spending, high property rents and rising overheads like energy bills and staff costs are making trading conditions hard enough on the High Street and right across business. Today’s announcement simply creates a toxic cocktail which is going to be very hard for thousands of businesses to swallow and survive.”

In order to counter-attack this jump in prices, main retailers and high street shops have teamed up in a British Retail Consortium (BRC) campaign, Fair Rates for Retail, to urge ministers to block next year’s increase, which comes amid warnings of a looming high street crisis, published ‘The Express’.

BRC director Stephen Robertson said the rise could hike retailers’ costs by 175million pounds.

Rigby goes further pointing out that “No business could get away with charging prices that are so many years out of date. Struggling firms shouldn’t have to take it from the government, yet they are being required to do so. It’s not what businesses need right now and, frankly, they deserve better. As an announcement it thoroughly flies in the face of pro-business claims from government”