The Chancellor George Osborne revealed a raft of measures to tackle the burden of business rates today and boost high streets. Retail Week takes a look at what retailers think.

Theo Paphitis, owner and chairman of Ryman, Robert Dyas and Boux Avenue said: “Today is a welcome first step from the Government in helping small businesses and they must now use the breathing space their short term relief has given them to completely review business rates to a system that is fairer for all.

“I’m not the only retailer who has previously said that business rates, which are now higher than rents in so many places, are no longer fit for purpose and that still remains the case after today’s announcement.”

Simon Roberts, Alliance Boots managing director for Health & Beauty UK and Republic of Ireland said: “We believe that strong town centres are a key driver for the future success of the retail industry in the UK and we welcome any move by the government to reduce the burden on high street businesses.

“To help make sure that the evolution of the high street is positive and sustainable we fully support the British Retail Consortium proposed business rate review to create a long term model that is fit for the future.”

John Rogers, Sainsbury’s chief financial officer said: “Today’s announcement, which breaks the outmoded link between business rate rises and inflation, is a welcome first step towards much needed business rate reform.

“However, business rates continue to place a significant and unfair burden on bricks and mortar retailers in the UK and are discouraging investment in local jobs and communities. An urgent rethink of business rates policy is required in order to level the playing field between traditional retailers and online players if we are to avoid an irreversible decline in our towns and high streets.”

British Retail Consortium director general Helen Dickinson said: “The Chancellor has recognised that businesses are suffering and is right to listen to retailers’ concerns on business rates. The BRC has campaigned for a two per cent cap, and reform of the business rates system, and it is extremely welcome to hear it announced.

“With the additional measures also announced today on National Insurance, retailers will be encouraged to do even more to support the aspirations of young people across the country. 40% of all jobs for those under 20 are in retail, and this will help retailers provide secure career opportunities for young people.”

Edward Cooke, Director of Policy, British Council of Shopping Centres said:“This reform is a strong statement by the Conservatives that they support Britain’s town centres and are willing to listen to British business to fix the problem. We hope that we can build on this momentum moving forward.”

Bill Grimsey, former chief executive of Wickes and Iceland said the £1,000 discount for small business and 50% discount for tenants in empty premises are “good news”.

He added: “But talk of reform is too far away and there is precious little detail of who will carry out this important work. If the reform of business rates is carried out by the BRC, as has been mooted, then it won’t be independent and any new system would be biased towards the big four supermarkets.

“While today’s measures are a step in the right direction there is nothing to address the fact that since this Government postponed the revaluation there is no longer a level playing field and unfairness is now deeply embedded in the system.”

John Cridland CBI Director-General said: “We have always advocated the dual approach of tackling the deficit and driving growth – the OBR forecasts confirm it is working. Let’s stick with what works.

“The pressure on the high street has been recognised; the 2% cap on business rates and discount for very small businesses are positive, as is the reoccupation relief.

“Abolishing a jobs tax on employing young people under 21 will make a real difference and help tackle the scourge of youth unemployment.

“But it was a missed opportunity not to support our hard-pressed energy intensive businesses which are also struggling with rising costs, and the package on housing supply could have been more ambitious.”

Tim Attridge CBRE head of retail rating said: “It is clear that the changes proposed by Mr Osborne won’t result in a dramatic improvement to the situation faced by businesses.

“We, like many others, were hoping for a business rates freeze, it is also disappointing that the government continue to ignore calls to reintroduce the 2015 revaluation. The retail sector and small businesses in general need a confidence injection; instead the 2% cap is a shot that won’t improve the high street’s health. The government has missed a golden opportunity to help the already squeezed retailers in England and Wales.”

Simon Tivey PwC head of rating said: “The new 50% “reoccupation” relief for small businesses on the high street could reduce the number of vacant shops but has the potential to be unfair to existing businesses who may struggle to pay full rates. Unless it’s managed properly, unintended consequences are inevitable, with small businesses just moving shops to take advantage of the relief, creating a merry go round of rate relief relocations.”

Liz Peace, chief executive of the British Property Federation, said:  “We are delighted that the Chancellor appears to have heeded our calls – and those other business groups – to commit to a review of business rates, as well as taking short-term action to mitigate the harm that continues to be caused by this archaic property tax. However, simply tinkering around the edges of the system will not be enough – the business rates regime remains one of the greatest barriers to investment in the built environment, and is fundamentally unfit for the 21st century.

“Action to support the re-use of empty shops is particularly welcome. Empty properties blight our high streets and town centres, and we would urge government to think further about reforms to the business rates regime that would allow property owners to invest further in these properties.”

James Thompson, Deloitte Real Estate head of business rates said: “The Chancellor’s announcements on the two per cent cap in business rates will be welcomed by retailers and businesses. 

“Whilst some businesses will benefit from the postponement of the revaluation from 2015 to 2017, other businesses will suffer. Some high street retailers are paying more in business rates than the rental value of their shops.”