The British Retail Consortium (BRC) is advocating for a substantial change in how retail business rates are levied, unveiling new research in its recent Budget submission.
- The BRC’s analysis reveals that the retail sector faces disproportionate taxation burdens compared to other industries, necessitating immediate governmental action.
- A proposed 20% Retail Rates Corrector aims to address inequities, as retail businesses shoulder a significant portion of the nation’s business taxes.
- Without intervention, the BRC warns that escalating costs could result in the closure of thousands of retail outlets over the coming decade.
- The call to action aligns with ongoing campaigns urging for comprehensive reforms in business rates, retail rents, and urban regeneration.
The British Retail Consortium (BRC) has issued a call for the government to implement a 20% adjustment on business rates for retail properties, ahead of the upcoming Budget announcement on 30 October. This recommendation forms part of the BRC’s Budget submission to the new Labour government.
The BRC’s research highlights a critical issue: the retail industry is overtaxed compared to other sectors. Retail accounts for 7.4% of all business taxes, which equates to £33 billion and represents 55% of the industry’s pre-tax profits. These figures underscore the need for a recalibration of the tax framework to ensure fair competition with other sectors of the economy.
The stakes are high. Without the proposed changes, the BRC warns that up to 17,300 shops may face closure over the next decade. This scenario poses a significant threat to the sustainability of high streets and the broader retail landscape in the UK.
Furthermore, these recommendations are part of a larger movement supported by initiatives like Drapers’ Reset Fashion Retail campaign. This campaign underscores the importance of addressing business rates, retail rents, and the regeneration of local areas to foster a healthy retail sector.
The proposed ‘Retail Rates Corrector’ is not merely a financial adjustment; it represents a strategic initiative to level the playing field for brick-and-mortar stores in an increasingly digital marketplace. The BRC’s proposals aim to safeguard the future of the retail sector by advocating for policy changes that reflect the realities of today’s economic environment.
Implementing the ‘Retail Rates Corrector’ is crucial for ensuring the long-term vitality of the UK retail industry.
