Retail groups call for business rates reform to save Britain’s high streets
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Retail and hospitality groups have called for urgent reform of business rates, which are contributing to shop closures and job losses.
“Retail accounts for 5 per cent of the economy but pays more than one-fifth of business rates,” Helen Dickinson, British Retail Consortium (BRC) chief executive, said. “The overall industry tax take is unsustainably high and contributes to shop closures, job losses and stifled investment.”
“There must be a permanent freeze of business rates and a cut to the multiplier in the longer term,” she said.
UKHospitality chief executive Kate Nicholls agreed, saying: “Reform of business rates, further action to tackle energy costs and suppliers, and a reduction in the burden of red-tape and other operating costs are all vital if the sector is able to gain the headroom it needs.”
“The last few years have been some of the toughest the industry has ever had to face and the climate remains challenging, with energy bills soaring, costs rising and a chronic shortage of workers,” Nicholls added.
Dee Corsi, chief executive of the New West End Company, also joined calls to review business rates.
“It is time for a future government to make a bold move to reform or replace business rates, which have disproportionately hit high street retail businesses,” Corsi said.
Corsi also called for “targeted support” including introducing longer Sunday opening hours in the West End and reviewing the UK’s visa system to tackle workforce shortages.
Labour has pledged it would cut business rates for small firms by increasing the rates relief threshold, if in government, paid for by raising digital services taxes on giants like Amazon.
Starmer said: “Britain’s businesses already give so much to our economy, and hold a huge amount of potential and promise just waiting to be unlocked, but they’re being held back by 13 years of Tory economic failure.
Greg Hands, Conservative Party chairman, commented: “Labour have abandoned their pledge to abolish business rates. The only position they remain committed to is more unfunded, uncosted spending pledges.”
“We have a £13bn package in place now to support firms with the cost of business rates,” hands said.