Government says business rates must be cut to help retail 'survive and thrive'

THE government has been urged to cut business rates to help the UK retail sector “survive and thrive”.

Andy Higginson, chairman of the British Retail Consortium, said: “We are Britain's largest employer and undervalued.”

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Speaking exclusively to The Sun, he said the retail sector, which employs around three million workers, pays “more than reasonable” in taxes and rates.

Mr Higginson, who is also chairman of JD Sports, is urging ministers to make an urgent rethink ahead of this year's general election.

He said: “In most constituencies, retail workers account for around 20 per cent of the vote.

“That is a powerful lobby that politicians should pay attention to.”

The BRC has published a manifesto calling on the government for a more coordinated approach to taxes and regulations.

Mr Higginson said: “We are not asking for grants. We just want to survive and thrive and be a force for good in the country.”

The BRC estimates that the current tariff pressure has led to 6,000 store closures in five years.

There have been a number of major casualties on the shopping streets, including Wilko, which was the last to close 400 stores autumn with the loss of approximately 12,000 jobs.

But there are still retailers who want to invest in the shopping streets.

The range owner CDS Superstores has acquired the Wilko brand and has already announced plans to open five stores.

Mr Higginson said: “We are an industry that is keen to invest. And we're keen to support many of the government's agendas, such as recycling, green issues and less energy accounts.”

Silver spoons

J.D LAW SPOON boss Sir Tim Martin has reasons to be cheerful. Sales at his pub chain have risen 10 per cent in the past six months as it recovered from the pandemic-induced hospitality crisis.

Bar sales increased 12 percent and food sales increased 8 percent. Meanwhile, use of slots and fruit machines increased by 10 percent as more customers combined a punt with a pint.

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Sir Tim above said: “Wetherspoon, like the hospitality industry, has had a consistent but slow recovery from the pandemic.”

However, he said labor and energy costs remain much higher than before the pandemic.

He complained that pubs are having to pay higher VAT than supermarkets and also said rising staff costs were much more likely to impact the pub sector than supermarkets.

Sir Tim said pubs will have to increase the cost of a pint by 13.5p to cover extra staff costs.

A typical pint in a pub now costs £4.50, compared to £1 in supermarkets where additional staff costs equated to a 1p price increase.

Wetherspoon closed fourteen pubs in the six months, but opened two new ones near London's Euston train station and at Heathrow airport.

It now has 814 pubs, up from 826.

EasyJet's woes in the Middle East

The crisis in the Middle East has cost easyJet more than £40 million, the airline said.

The conflict affected tourist travel to Egypt and suspended flights to Israel and Jordan.

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Its routes account for around 4 percent of EasyJet's winter flight schedule.

But boss Johan Lundgren claims operations in Egypt are now recovering. He said: “It was hit hard but bounced back very quickly.”

The budget airline posted a loss of £126m for the last three months of 2023, although that was higher than the £133m loss for the same period last year.

Passenger numbers increased 14 percent year-on-year, the report said.

EasyJet Holidays made a profit of £30 million for the period, compared to £13 million last year.

“We see positive booking momentum ahead summer 2024,” Lundgren said.

500 canceled at ABRDN

INVESTMENT giant ABRDN plans to cut around 500 jobs as it tries to cut its costs by £150 million a year.

Boss Stephen Bird said the turmoil in global politics has made investors nervous.

He said: “Market conditions have remained challenging for our mix of businesses.”

The fund manager plans to cut costs by removing management layers and making outsourcing and technology more efficient. The company still plans to pay employee bonuses.

Shares plummet at Revolution

Shares in REVOLUTION BARS fell by a fifth yesterday after the company said it would delay renovations to save money.

The company – which operates 58 bars, a pub chain and a market hall – cut its profit forecasts after trading started “softly” in January. Traders then sold shares.

Boss Rob Pitcher said: “Our younger guests are still feeling the impact of the cost of living crisis.”

Revolution opened its 22nd Peach pub in November and saw weekly sales exceed £1m for the first time at Christmas.

But the chain admitted it is unlikely to see growth in the second half of the financial year.

Tunnel of love

EUROSTAR passenger numbers rose by more than a fifth last year, the railway company says.

In 2023, there were 18.6 million, a return to pre-pandemic levels.

The three main routes from London St. Pancras were all up: by 38 percent to Amsterdam, by 33 percent to Brussels and by 25 percent to Paris. The company expects to transport almost two million passengers to the French capital for this summer's Olympic and Paralympic Games.

It also hopes to reach 30 million passengers by 2030.

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The UK private sector is growing faster than expected, according to the latest S&P/CIPS PMI economic survey for January. It reached 52.5, a seven-month high. Companies say customer demand is stronger thanks to lower financing costs.

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Not Aldi the same

SUPERMARKET chain Aldi has been told it can continue selling its cloudy cider after winning a prize court case against drinks manufacturer Thatchers.

The Somerset-based brewer sued Aldi, claiming it was infringing the trademark of its 'cloudy lemon cider'.

Thatchers said that about Aldi Taurus brand has “copied” theirs.

But yesterday Judge Melissa Clarke dismissed the case, saying there was a “low degree of similarity” and “no likelihood of confusion”.

Aldi said: “There is nothing cloudy about this judgement.”