Over the past 12 months, its figures show that 15 major retailers have gone into CVA or administration. This compares to the recession’s figures of 12 companies in 2008 and four in 2009.
Colliers calculated the rating bills of high street names of those with around 20 stores or more that have gone into administration or announced CVAs since the 2017 revaluation, including Handmade Burger Co., Jamie’s Italian, Prezzo and Byron. Its figures show that the companies saw a collective rates bill of more than £152m last year.
The company’s data also shows that 12,000 jobs have already been lost or put on the line since April 2017.
Colliers’ head of business rates, John Webber, is calling on the government to “tackle the problem properly” before more companies get into trouble and more people lose their jobs.
According to UK Hospitality, pubs and restaurants alone are paying £1bn a year more in rates than they should be.
Trade bodies including UK Hospitality, Camra and the British Beer and Pub Association have also called on the Chancellor to reform the business rates and decrease “the unnecessary costs of doing business” to avoid further closures and job losses.
The business rates reform has come at a time of increased wage costs, higher costs of materials due to inflation, and fewer people going out and buying in shops or eating in restaurants due to economic uncertainty, placing further pressure on businesses.