John Webber, head of business rates at Colliers International, has called for the immediate introduction of a three-month rates deferment scheme to support businesses impacted by the outbreak of coronavirus.
The rates deferment scheme would mean that businesses are given a three-month period during which they would not need to pay their business rates, which would eventually be paid back as the situation improves.
Webber said: “We are in constant dialogue with our clients, which are strong companies, but with footfall in retail centres ‘falling off a cliff’ and the hospitality sector seeing similar drops in trade, it is ridiculous that such large amounts of cash are being paid to the public purse when it could be used to safeguard jobs over the coming months. This three-month rate deferment would at least give businesses some breathing space to maintain their cashflow.”
He added: “Given that we could be seeing one of the worst pandemics in our lifetime, with a devastating resulting economic impact as shoppers keep away from stores and restaurants, warehousing for imported goods stay empty and increasingly office staff stay at home, the government must introduce some emergency measures to support a wider section of business than it is currently proposing.”
Colliers said that if the impact of coronavirus continues, businesses should be able to claim the rates deferment as a “material change of circumstance” when appealing their business rates bills. Although these appeals would normally be dealt with over a lengthy period, the government could and should instruct the Valuation Office Agency to make immediate temporary reductions in the rateable value where footfall or turnover is impacted.
“The economic turmoil we are starting to see across the global economy, and indeed our own economy, means we need to prepare for the impact as Covid-19 spreads,” said Webber. “The government can’t just support one section of our economy. It must look at wider measures to help all businesses, or the consequences of more administrations and job losses looks certain to continue.
“If Boris Johnson wants to reassure businesses and the people employed by them that he is doing everything he can then surely the above measures should be acted upon immediately. We are facing an economic Battle of Britain. If he really wants to follow in the footsteps of our wartime leader then he must prove it.”
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