Leading retail CEOs are urging the Government to reform the current business rates system, which they argue unfairly impacts high street stores compared to their online counterparts. The British Retail Consortium (BRC) has highlighted that while physical shops face high business rates, online retailers are often subject to lower costs, putting brick-and-mortar businesses at a disadvantage.
The UK has been losing more than 1,000 shops annually, and research indicates that without intervention, an additional 17,000 stores could shut down over the next decade.
The call for change comes from the Government’s Autumn Statement, with retailers advocating for reduced business rates and a fairer tax distribution across the retail sector. The BRC emphasises that without reform, high street stores could face closures, threatening jobs and local economies across the UK.
Helen Dickinson, Chief Executive of the BRC, said:
“The burden of business rates falls disproportionately on high street shops, which is why retail CEOs are asking the government to level the playing field between online and in-store retailers. Rebalancing this will help to create thriving high streets and provide a more sustainable future for the retail industry.”
The retail sector contributes 7.4% of all business taxes (£33 billion), 1.5 times higher than its proportion of the overall economy, representing 5% of GDP. Retailers call for immediate action to support the high street and ensure that large and small businesses can compete on fair terms in an evolving retail landscape.
Talk to us about your business.