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Supermarkets win £300m cash machine case | Supermarkets win £300m cash machine case |
(35 minutes later) | |
Retailers will no longer have to pay millions of pounds in business rates for cash machines outside their shops, following a ruling by the Appeal Court. | Retailers will no longer have to pay millions of pounds in business rates for cash machines outside their shops, following a ruling by the Appeal Court. |
Since 2010 supermarkets and convenience stores have been liable to pay rates on the machines. | Since 2010 supermarkets and convenience stores have been liable to pay rates on the machines. |
But the court ruled that about £300m they have already been charged will now have to be refunded. | But the court ruled that about £300m they have already been charged will now have to be refunded. |
Part of that money will have to come from the government, and part from local authorities. | Part of that money will have to come from the government, and part from local authorities. |
The shops that will immediately benefit include Sainsbury's and Tesco, which had taken the case to appeal. | The shops that will immediately benefit include Sainsbury's and Tesco, which had taken the case to appeal. |
The court also decided that The Valuation Office - which brought the original case - should not be allowed to appeal to the Supreme Court. | The court also decided that The Valuation Office - which brought the original case - should not be allowed to appeal to the Supreme Court. |
However the Valuation Office can still petition the Supreme Court should it wish to do so. | However the Valuation Office can still petition the Supreme Court should it wish to do so. |
'Unfair system' | 'Unfair system' |
Tesco said it welcomed the judgement. | Tesco said it welcomed the judgement. |
"We recognise the vital role that ATMs play in the daily lives of our customers and remain committed to providing this service to them," a spokesperson said. | "We recognise the vital role that ATMs play in the daily lives of our customers and remain committed to providing this service to them," a spokesperson said. |
"We welcome today's result and the confirmation of our belief that ATMs should not be separately rateable." | "We welcome today's result and the confirmation of our belief that ATMs should not be separately rateable." |
The Co-Op said it was a victory for people who rely on ATMs. | |
"The case had threatened the viability of the ATM network, and risked the future of much-needed banking services across communities," a Co-Op spokesperson said. | |
ATM operator Cardtronics was also involved in bringing the case. | ATM operator Cardtronics was also involved in bringing the case. |
Jerry Schurder, the head of business rates at Gerald Eve, which represented Cardtronics, said: "Retailers with ATMs within their properties will be extremely pleased at a decision that will lead to both refunds for previous payments backdated as far as April 2010 and reductions to future bills. | Jerry Schurder, the head of business rates at Gerald Eve, which represented Cardtronics, said: "Retailers with ATMs within their properties will be extremely pleased at a decision that will lead to both refunds for previous payments backdated as far as April 2010 and reductions to future bills. |
"The UK's High Street is under enormous pressure from all directions, and a big part of this has been the unfair nature of the business rates system." | "The UK's High Street is under enormous pressure from all directions, and a big part of this has been the unfair nature of the business rates system." |
The Appeal Court also rejected an attempt by the Valuation Office to get retailers to pay business rates on machines inside their shops as well. | |
This would have hit many small shops and convenience stores. | |
"We especially welcome the Court's rejection of the Valuation Office's attempt to separately rate internal machines, the consequences of which would have been dire," tweeted Mr Schurder. |