Mike Ashley's Frasers threatens to close stores after 'worthless' Budget help

Mike Ashley's Frasers Group has threatened to close stores after slamming Rishi Sunak's new business rates holiday as "near worthless" for larger companies.

The Sports Direct owner said that the £2m cap on the amount of relief a company can claim means it will have to review all its stores to find any that might no longer be viable.

"Frasers Group wishes to note its disappointment at the business rates relief announced," it said.

"Whilst the retail industry as a whole has repeatedly asked for structural reform of business rates, none has been forthcoming. Frasers Group and many retailers would have expected suitable relief until structural reform is implemented."

In his Budget on Wednesday, Mr Sunak extended the holiday on business rates until the end of June, adding that rates would remain discounted by two thirds for the rest of the financial year, up to a value of £2m if businesses are closed. However, this cap shuts out many larger businesses.

The company said: "For Frasers Group this cap will make it nearly impossible to take on ex-Debenhams sites with the inherent jobs created. It will also mean we need to review our entire portfolio to ascertain stores that are unviable due to unrealistic business rates.

"Frasers Group believes that retailers should pay the fair amount of rates in line with realistic rateable values, but instead we continue to have an unwieldy, overly complex, and out of date business rates regime."

Mr Ashley is looking to take over some old Debenhams stores, after Boohoo bought the brand but said it did not want any part of the retail estate.

Shares fell 0.1pc to 464p in early trading.