Skip to main content

MPs urge government to fix “broken” business rates system

// A Treasury committee report calls for the government to fix the “broken” business rates system
// The current system of rates on businesses is “unfair” as it puts more pressure on high street stores than other sectors

A Treasury committee report has urged the government to fix the “broken” business rates system as it is continuing to affect high street retailers.

The influential select committee said that the current system of rates on businesses is “unfair” as it puts more pressure on high street stores than online.

The report, published today by a cross-party committee of MPs, said the government should “acknowledge this and explain whether it is government policy to allow the growth in business rates to outpace inflation”.

READ MORE: 

The delayed report release follows the appointment of Mel Stride as the new committee chairman.

Meanwhile, business groups have called on the government to provide retailers with an “immediate respite” from increases in the property tax.

The committee has been presented with alternatives to business rates such as a land value tax, online sales levy, profits tax, single consolidated tax and hybrid tax.

“It’s abundantly clear that the current business rates system is broken,” Committee lead member Alison McGovern said.

“The tax represents an increasing burden on businesses, particularly those with a physical high street presence struggling to remain competitive,” she said.

“The government must ensure that business rates align with its aim to boost productivity and do not disincentivise growth.

“The committee was presented with numerous alternatives to the current system, but none of them had been sufficiently modelled to examine who would be the winners and losers of any change.

“The government must examine such alternatives in time for Spring Statement 2020.”

BRC chief executive Helen Dickinson said: “Business rates are a significant driver of store closures and job losses and retailers have been getting a raw deal for too long.”

“While retail accounts for five per cent of the economy, it pays 25 per cent of the business rates. Such imbalances can be seen in transitional relief – identified by the committee as needing reform – which takes £1.3 billion from retailers and redistributes most of it to other industries.

“While the committee is right to recommend that government reviews alternatives to the broken business rates system, it must not do this in isolation. Any review must look at the whole suite of business taxation with the aim of creating a tax system that is fit for the 21st century.”

Click here to sign up to Retail Gazette‘s free daily email newsletter

The post MPs urge government to fix “broken” business rates system appeared first on Retail Gazette.



from Retail Gazette https://ift.tt/2N5kasl
via IFTTT
Labels:

Comments

Post a Comment

Popular posts from this blog

Eagle Labs launches impirica CBD brand

ST. PETERSBURG, Fla. — Eagle Labs has launched impirica, a new brand of CBD intended to eliminate consumer fear, and increase confidence, in trying the exciting new cannabidiol category. Michael Law Although most Americans have now heard about CBD, many are very confused and concerned about product quality. This is inhibiting trial in the category and holding back conversion into sales. In fact, a 2017 study by Johns Hopkins University found that two out of three CBD products on the shelf did not contain the amount of CBD reflected on the label. Furthermore, in 2018 and 2019, the FDA sent notices to a substantial number of CBD manufacturers advising them of serious concerns about product quality or egregious medical claims. The impirica brand looks different than most CBD brands — the brand name itself connotes testing and trust, says Eagle Labs chief commercial officer Michael Law. “It doesn’t use the traditional category colors of browns and greens, and you won’t find a hemp...
70 comments
Read more

Sagar Daryani, CEO and Co-founder – Wow! Momo & Saga: From a Kiosk to a Kingdom

Sagar Daryani’s entrepreneurial odyssey from humble beginnings to pioneering success has redefined the landscape of food startups in India. Co-founding Wow! Momo, he has spearheaded the growth of the largest indigenous QSR chain in the country, crafting a remarkable saga of triumph The Genesis: A Visionary Venture Takes Root In 2008, armed with a mere Rs. 30,000 and boundless ambition, Sagar Daryani and Binod Homagai embarked on their entrepreneurial journey while still pursuing their graduation in B.Com Hons from St. Xavier’s College, Kolkata, even before their college results were out. They knew the value for money and boot-strapped to plough back profits and grow their venture. Sagar spearheaded brand expansion, brand creation, and marketing and retail operations. Grew across the city with a strong consumer focus. The early days were hard but keeping track of the money flow was even harder. Believing in the concept of ‘1 rupee saved is 5 rupees earned’, and the lessons they lear...
1 comment
Read more

Homegrown ice cream chain HOCCO to open 250 stores, eyes Rs 400 crore by FY26

Ankit Chona, Founder and Managing Director of HOCCO, delves into the company’s revenue model, growth strategies, and vision for the future… Bengaluru: HOCCO (House of Chonas Collaborative) , the Ahmedabad-based ice cream and quick-service restaurant (QSR) chain, boasts a rich legacy spanning over 70 years, with roots tracing back to pre-independence India. The Chona family has been deeply entrenched in the food industry since 1944, originally operating in undivided Pakistan. Following the Partition, Satish Chona , an engineer with British Overseas Airways Corporation, relocated from Karachi to India. After journeying through multiple cities, he ultimately settled in Ahmedabad, where he established his first QSR outlet in 1953. Three decades later, he expanded into the casual dining segment, launching a restaurant in Baroda while continuing the family’s ice cream manufacturing business. However, in 2017, the company sold its ice cream division to a South Korean firm, shifting its fo...
Post a Comment
Read more