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High Street In Need of Cash Injection Amid Tax Hike Fear

Struggling town centres will be among the worst hit by a new wave of tax hikes.

New reports have predicted future distress for British high streets as a sharp rise in business rates is forecast. With profits already low and online competition biting the heels of brick and mortar, any further bad news could tip retailers over the edge.

Consumer Price Index (CPI) figures, released last week, revealed an inflation of 2.4 per cent. This will add around £600 million to the business rates burden, according to the real estate group, Colliers International. Colliers’ report predicts a £200 million increase for British retailers alone. This will be devastating for the already-vulnerable retail sector, with profits likely to experience a downspin after Brexit next year.

Over the last ten years, retailers have seen business rates rise with increasing frequency. Despite various calls for reform from both parliament and industry, their presence has continued to pose a severe threat to the British business community. Small businesses have been particularly hurt by the tax, with their success derailed and their confidence discouraged.

 

The figures come out following a year of carnage on the high street. It is estimated that over 30 sizeable retail/restaurant chains (of 10 stores or more) have gone into administration since the beginning of the year including names such as Toys R Us, Carpet Right and House of Fraser Other stores such as M&S or Debenhams are closing outlets.

Given the current crisis on the high street, any further expense could create more insolvencies and generate more financial distress. To avoid such negative fallout, business owners should look to third parties to ensure their own survival. Credit management companies like here at the Credit Protection Association provide the necessary injection of cash, while also utilising our expertise to ensure the business owner’s financial future is secured.

At the Credit Protection Association, we free up cash flow and bestow financial stability through our debt recovery service. This means the recovery of all unpaid invoices and old debt that many of our Members had assumed was long-lost. We compliment this service with our credit monitoring facilities, such as our credit reports, credit checks and a company and directorship register. These online resources are accessible to all our Members and allow them to examine their customers’ financial history, flagging up any historic bad payment history or County Court data that could negate a positive future relationship.

The Brexit deadline edges closer and the business community is starting to buckle under the strain. Retail and hospitality sectors are suffering from low profits and low footfall, and any increases in business rates will only widen the advantage already held by e-commerce businesses. Business owners need to focus on their finances and cash flow, seeking more than an injection of cash but a financial makeover.

The Credit Protection Association is a credit management company established in 1914. If you supply goods or services on credit then we can help you!

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