Over 50 commercial property groups are requesting that the UK government extends the business rates holiday to the entire economy to help companies avoid bankruptcy.
Firms such as IWG, Workspace and many others are writing a letter to chancellor Rishi Sunak, stating that without the holiday, “businesses, jobs and livelihoods” risk being lost.
“Anxiety levels are at an all-time high. In the absence of relief there will be job cuts and businesses will go to the wall,” said Luke Philpott, joint chief executive of DeVono Cresa, an adviser to tenants in office buildings.
The UK government has waived rates for thousands of businesses in the retail, leisure and hospitality sectors, but flexible office firms are still required to pay despite taking a major hit from the pandemic.
According to John Spencer, chief executive of Landmark, business rates are equivalent to about 40% to 45% of an office operators rental income, which has plummeted over the past few months due to millions of people working from home.