MPs concerned by business rates as worst year for high street looms
The influential chair of the treasury select committee has expressed concern for the effect business rates have on retailers, as new figures show this year could be the worst for the high street on record.
MP Nicky Morgan said today that it was clear bricks and mortar stores are “struggling to remain competittive against online retailers”.
She was commenting on correspondence with the chancellor Philip Hammond, in which he responded to the committee’s concerns over business rates.
He said it was clear that “we need to find a better way of taxing the digital economy”.
But he added that it was right for business rates to continue to support the stability of local government funding.
In response, Morgan said that the committee was “increasingly concerned” by the financial burden on high street shops.
“We are likely to scrutinise business rates further as part of our Autumn Budget inquiry later this year,” she said.
This comes as new data from BDO pointed to this year being the worst for the high street in over a decade.
Read more: It’s time to let the free market reshape our failing high streets
Sales in June were down 1.7 per cent, capping off what BDO’s head of retail Sophie Michael called a “crippling” first half of the year.
“These numbers confirm what many retailers have already suspected – this has been the worst first half of a calendar year for more than a decade,” she said.
She said that the government must now stand up for the British high street.
Some 28,000 jobs have been lost since the beginning of the year, with another 40,000 expected to go by the end of the year.
“It will take a monumental change in fortunes on the high street to turn 2018 into anything other than an annus horribilis,” added Michael.
Read more: Tesco boss blames business rates for retail chaos