NFRN backs Grimsey’s criticisms of BRC business rates proposals in UK

Former Iceland CEO Bill Grimsey has criticised the BRC's proposals for business rates reform in the UK on the grounds that the main beneficiaries of the changes would be large supermarkets

Newsagents' federation says it is 'supportive of reform' but changes must 'assist small businesses'

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Former Iceland CEO Bill Grimsey has criticised the BRC’s proposals for business rates reform in the UK on the grounds that the main beneficiaries of the changes would be large supermarkets

The National Federation of Retail Newsagents (NFRN) has backed former Iceland CEO Bill Grimsey’s criticisms of the British Retail Consortium’s (BRC) proposals for business rates reform in the UK.

Amongst the suggestions, the BRC report (fronted by John Rogers, the chief financial officer for Sainsbury’s), proposed that the system be reformed to reward businesses who contribute to the UK economy through corporation tax and the employment of large numbers of people.

In a press statement, the BRC said its "ground breaking ideas…could ensure that customers continue to benefit from competition, provide positive incentives for retailers to invest in property, support the regeneration of the high street and create more jobs to add to the three million people already employed in the industry".

Four main suggestions provided by the BRC include "rewarding employment by delivering a discount to the business rates bill based on a given value per employee, capped at an overall proportion of [the company’s] rates bill".

They also propose "supporting successful business by providing a discount to the business rates bill based on a percentage of corporation tax payment, capped at an overall proportion of [the company’s] rates bill".

However, Bill Grimsey has criticised the proposals claiming that the main beneficiaries of the reforms would be the large supermarkets.

Commenting on the proposals, NFRN national president Colin Fletcher said: "The NFRN has long argued for reform of the business rates system but we agree that these proposals will do little to help ease the burden on independent news and convenience stores.

"Under these proposals, businesses with high numbers of staff or who generate large corporation tax bills would receive larger discounts on their rates bills. As small independent retailers, many of our members wouldn’t see a difference in the cost of their business rates if the proposals were introduced.

"The NFRN is supportive of reform but it is vital that any changes work to assist small businesses."

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