Nearly 50 high street shops close every week, report finds

By

Barbara Santamaria

Published
Jan 3, 2018

New research has found that 44 shops disappear from British high streets every week, with the number expected to rise further if no action is taken to help businesses cope with their new business rates.

Traditional shops across the UK are losing the battle as they face increasing pressure from online retailers and rising business rates.

According to a report from Altus Group, almost 15,860 shops across England and Wales have shut in the last seven years, representing a 3.6% decline in the number of shops, reports UK newspaper This is Money.

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But while bricks-and-mortar stores are struggling to cope with mounting pressures, their online rivals are not facing the same issues. British businesses could see an extra £1bn tax bill this year unless the Government freezes business rates.

Experts believe the current tax system is damaging physical stores and giving advantage to online retailers, as their distribution centres are rarely located in prime retail areas and will therefore see their bills only marginally increased.

Alex Probyn, president of UK business rates at Altus Group, commented: “An online sales tax might be used to level the playing field, but it does not belong within a system based largely on rental values.

“An online sales tax, for example, should not be seen as a generator of additional income, but revenue could be ring-fenced and used to provide additional relief for traditional bricks-and-mortar retailers.”

Professor Joshua Bamfield, director at the Centre for Retail Research, added: “If we want to maintain a variety of forms of competitive retail enterprise, from small stores to large big box and department stores serving villages, towns and big cities, we need to ensure that property and company taxes do not consistently penalise physical shops in favour of e-commerce.”