Tesco the supermarket giant is in line for £105m cut in business rates and say’s they will remain “one of the UK’s largest rate payers,” despite reported profits of over £1bn.
However, smaller retailers will see the 1 April business rates increase by over 50 per cent although Theresa May has said there will “appropriate relief” for companies hit the hardest.
Communities secretary Sajid Javid is to be questioned by MPs over the handling of the revolution Wednesday.
Business rates specialist CVS has released new figures that shows the governments revaluation, is to see Tesco’s bill in their largest stores to fall by £13m this year from £450m to £437m, therefore saving them over £100m over the next five years.
Tesco said the figure is “inaccurate” and has declined to say how much their larger stores will save.
A Tesco spokesman said: “Tesco is one of the UK’s largest rate payers, paying almost £700m in rates in 2016-2017, and the 2017 revaluation will not alter that trend.
“Tesco has a significant physical presence across high streets and town centres, and fixed costs such as business rates are placing huge pressure on our operations. The current rates system is unsustainable and needs urgent reform.”
Mark Rigby the chief executive of CVS said: “Over the next five years, allowing for transitional relief which limits how quickly bills can rise and fall, with increases through inflation, CVS projects Tesco will save £105.32 million in rates under the revaluation for its largest stores.”
“In comparison, across England and Wales small shops have seen their rateable values, used to determine bills, increase by 8.5% whilst pubs have seen a 14.36% hike.”
Figures were based from data published by the government on property values dating from 2010 and 2017 covering 563 of Tesco’s superstores.