The big four grocers will receive a £173m tax reduction on their larger stores over the next five years following the business rates revaluation.
New figures suggest that rateable values on larger stores operated by Tesco, Sainsbury’s,Asda and Morrisons in England and Wales will plummet in the wake of the Government’s delayed revaluation.
This year, 2,172 supermarkets have been revalued at a collective £2.76bn, compared with £2.93bn in 2010, according to business rent and rates specialist CVS.
The average superstore will see its rateable value fall by 5.9%, or £79,368.
The Government has also indicated that the multiplier will fall by 3.4%, reducing by 1.7p.
However, proposals for transitional relief, which limits big increases and decreases in rates, could effectively cap reductions in business rates for the stores at 4.1%.
CVS chief executive Mark Rigby said: “Falling shop prices are causing enormous cost pressures for retailers. There is no doubt that had the revaluation not been delayed by two years, the big four would have been hit hard.
“With the loss of market share and the proliferation of new stores by the discounters, undoubtedly, this will be good news.
“However, the Government’s proposals for transitional rates relief mean that those businesses expecting lower bills will only get those savings gradually – so firms will have to wait even longer for their long-awaited relief.”