Some research by Ellandi and Montagu Evans suggests that the Government's rates relief for retail premises is not likely to really help their shopping centres.
From April there will be a one third reduction in business rates for retail premises with a rateable value between 12k and 51k. This is to last for two years.
Ellandi estimate the rates bill for their 22 English centres is £37m, but only around a third of this (£11m) relates to retail premises with a rateable value below 51k. And State Aid rules mean that only local retailers are likely to benefit so it is likely that only c £2.2m of rates payable will benefit from the one third discount.
This means around £700k of rates will be saved by smaller local retailers. A help but not ground breaking and certainly not enough to really help the High Streets and Shopping Centre retailers.
The rates system needs fundamental reform in order to benefit all High Street and Shopping Centre retailers no matter their size. This research shows that even the much heralded smaller rates relief will have very limited impact.