Recently the British Retail Consortium (BRC) called on the UK chancellor of the exchequer Rishi Sunak to unlock the industry’s contribution.
To recovery, the economy from the pandemic by delivering a cut in the business rates burden in the Autumn budget.
Otherwise, four out of five retailers would be forced to close additional stores, if the Fundamental Review does not substantially reduce the rates burden, according to the BRC survey.
The association also urged Sunak to stand by his party’s manifesto commitment to “cut the burden of tax on business by reducing business rates” through its Fundamental Review, which is due to conclude in Autumn.
BRC said, “Business rates have contributed to the loss of shops and retail jobs for years but the need for decisive action has never been greater.”
On the other hand, the BRC’s budget submission highlights the need for immediate action, to improve the efficiency of the business rates system. There are three key recommendations to the government.
The fundamental review must result in a long-term substantial reduction of the £8-billion annual rates tax burden on retailers.
Also, the ending of downwards phasing of transitional relief, which cost retailers over £500 million between 2017 and 2020.
Helen Dickinson, BRC chief executive says, “The evidence is clear that business rates are costing shops and jobs and undermining the Government’s ‘leveling up’ agenda. Retail is the UK’s largest private-sector employer and serves as a vital lifeline to places most in need of leveling up, offering flexible jobs, supporting other businesses on the high street, and breathing life into local communities.”
Besides that, the business rates review is a great opportunity for Government to put the ‘shops tax’ into reverse, and support investment and growth in the regions that need them the most, he added.