Retail CEOs in the UK have called on the government to introduce a Retail Rates Corrector as part of its commitment to reforming the business rates system.
In an open letter, coordinated by the British Retail Consortium (BRC), over 70 leading retail CEOs have written to Chancellor Rachel Reeves MP that 'now is the time to level the playing field between industries'.
Retail Rates Corrector
The Retail Rates Corrector is a 20% downward adjustment in business rates paid on retail properties.
It seeks to redress the imbalance that sees the retail industry pay 7.4% of all business taxes (£33billion), a share 1.5 times greater than its share of the overall economy (5% GDP).
This tax holds back investment in people and places, directly impacting the three million people employed by the industry, and the 2.7 million additional people employed within the supply chain, the BRC noted.
Helen Dickinson, chief executive of the British etail Consortium, said, “Retail has been the golden goose, generating tax revenues far beyond the industry’s size, but the current situation is not sustainable. The government should act to rebalance the system and ensure all industries are paying their fair share.
“This in turn would drive increased retail investment in people, places and communities. The Budget is the perfect opportunity to lay the groundwork for local investment that delivers for retail’s customers, delivers for its employees, and delivers for the economy.”
Impact On Shoppers
The tax also has an impact on shoppers and the communities they live in, the BRC added.
The UK has been losing shops at a rate of over 1,000 a year, and research shows that without action a further 17,000 shops could close over the next decade.
The Retail Rates Corrector will stem this tide of shop closures and unlock new investment in jobs, shops and communities, the BRC added.
High streets and town centres in the UK are paying far more than their fair share of tax, with retail and hospitality paying the highest proportions of their pre-tax profits in taxes compared to any of the other main business sectors.
Out of retail’s £33 billion total tax bill, one-fifth is made up of business rates – the highest of all business sectors.
