Struggling retailers are turning to Company Voluntary Arrangements (CVAs) in order to lessen the strain of business rates.
According to law firm Shoosmiths, six of the CVAs it has carried out over the past two years have allowed retailers to cut business rates payments by as much as 95% for one year, reports the Sunday Times.
The controversial property tax has put added pressure on high street retailers, and last year made £27bn for the Treasury.
“A lot of these retailers are struggling because of the rising cost of business rates, which are crippling,” commented James Keates, head of restructuring at Shoosmiths.
“In other CVAs, landlords have been taking all the pain, but maybe local authorities need to realise that business rates going up does have an impact. The law allows CVAs to compromise all creditors, and they are a creditor like anyone else.”