Tesco's chief executive, Dave Lewis, has called for the introduction of an online sales levy that could help reduce business rates and level the "tax playing field between physical retailers and their online competitors".
In a speech to the British Chambers of Commerce Annual Conference, Lewis suggested that a 2% levy could raise £1.5 billion (€1.76 billion), which, in turn, could lead to a business rate cut of 20%.
Such a levy would be compatible with UK and European Union law and revenue neutral to the Treasury, "incentivising investment and creating a more sustainable and growing tax base in retail."
While Lewis did acknowledge that there is an argument that such a levy "taxes the future", he added, "I would argue business rates are killing the present. Damaging our economy. Retailers have no choice but to pass through the extra costs […] it’s hurting shoppers and households, too."
Noting that as many as 380,000 jobs are set to be lost in retail by 2022, Lewis called on the government to "act now" to benefit businesses, save jobs, and preserve "social and economic value across our villages, towns and communities."
Apprenticeship Policy
Lewis also suggested that the current policy framework for apprenticeships is "broken" and needs amending.
"Backfill costs for retailers should be covered from the pot and administered in the same way as incentive payments," Lewis noted, "and functional skills training, before apprenticeships start, should also be funded from the levy pot. You’d get fully focused apprentices from the start, improving performance with less time away from the day job."
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
