Retail has been a challenging environment for some time now. Online shopping versus a High Street presence have been stark options for many, with covid lockdowns and a retracting economy dealing a further blow. But, the high levels of business rates are a challenge that retailers say is borne disproportionately by the industry.
Retail bosses have written to the Chancellor to flag that although retail contributes around 6% to the economy, it is paying 7.4% of all business taxes – and a large chunk of this comes from business rates.
The solution proposed by the British Retail Consortium is a Retail Rates Corrector – a reduction of 20% in business rates paid by the sector. The aim is to rebalance the burden between sectors and industries, and drive investment in retail. It is hoped that this will lead to more jobs and the regeneration of towns and High Streets.
For many, the Budget is widely expected to deliver the bitter pill of higher levels of tax – will the government take the opportunity to give a sweetener back to the retail industry? We will find out on 30 October.