Laura Sharman 24 September 2019

Thomas Cook collapse could cost councils £12m a year

The collapse of Thomas Cook could see councils lose around £12m a year in business rates, new estimates have suggested.

Colliers International has estimated the impact the closure of 560 stores will have on local government finances.

The collapse of the travel giant has also put 21,000 jobs at risk, with around 1,000 of those based in the company's headquarters in Peterborough.

John Webber, head of rating at Colliers International, said: ‘Thomas Cook’s predicament mirrors other UK high street shops trying to balance a period of economic uncertainty, a reduction in demand and higher costs.

‘The Government surely needs to look at how it can help companies like Thomas Cook - by reforming the business rates system so that struggling companies who employ thousands of jobs as well as contributing millions to the public purse are better able to survive today’s brutal retail climate.’

Cllr John Holdich, leader of Peterborough City Council, said: 'We will be doing all that we can to support the staff members, signposting them to other jobs and places where they can get help and support. I am confident that many of them will have transferable skills and will be an asset to other companies in our city.

'Each year on average we see in the region of 2,500 new jobs created and there are hundreds of new businesses launching every year. As a result, our unemployment rate is below the national average.'

Photo: Roger Utting/Shutterstock.com

What’s happening inside the LGPS? image

What’s happening inside the LGPS?

Get the most informed take on the challenges and opportunities that substantial reform will bring at this year’s PLSA Local Authority Conference.
SIGN UP
For your free daily news bulletin
Highways jobs

Senior Project Manager (Regeneration)

West Yorkshire Combined Authority
£49,359 to £56,057 per annum (pay award pending) – Grade 9
With ambitious goals ahead, we need dedicated individuals who are ready to make a real impact as part of our expanding Housing team Leeds / Hybrid
Recuriter: West Yorkshire Combined Authority

Information Governance Officer

Essex County Council
£28349.00 - £33351.00 per annum + pension
Information Governance OfficerPermanent, Full Time£28,349 to £33,351 per annumLocation
Recuriter: Essex County Council

Information Governance Officer

Essex County Council
£28349.00 - £33351.00 per annum + pension
Information Governance OfficerFixed Term, Full Time£28,349 to £33,351 per annumLocation
Recuriter: Essex County Council

HR Advisor - Pay & Policy (Career Grade)

Wakefield Council
Grade 9 - Grade 10, Career Grade, 24 hours, Permanent
Are you ready to make a difference and shape policies that foster a high performing and inclusive workplace? Wakefield, West Yorkshire
Recuriter: Wakefield Council

Leisure Support Assistant

Wakefield Council
£12,013.50 - £12,202.00, Grade 3, 18.5 hours, Permanent
Are You Ready to Make a Difference in Your Community? Wakefield, West Yorkshire
Recuriter: Wakefield Council
Linkedin Banner