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.'

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