Tuesday’s unexpected but very welcome deferral of the proposed 5 per cent rates rise was not the only good news in retail property this week.

For several months Retail Week has been reporting on all sorts of argy-bargy between retailers and landlords.

But representatives of the two groups, spearheaded by Arcadia and Land Securities, have come up with a plan to cut service charges. Better still, it’s a plan that has been tested and reduced charges by as much as 20 per cent.

Property of course is one of the biggest costs retailers bear. The stores sector still faces a 2 per cent rates rise. Lower service charges certainly aren’t a get-out-of-jail card for the industry, but every lightening of the burden borne by retailers is to be welcomed.

  • george.macdonald@retail-week.com

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