Labour urged to fix broken business tax regime to save High Street

High street retailers have said next month’s Budget is a “golden opportunity” to fix the broken business tax system.

The British Retail Consortium (BRC), which works on behalf of retailers, has implored Chancellor of the Exchequer Rachel Reeves to put replacing the property tax on shops at the top of her agenda.

Business taxes are a tax based on the value of a commercial property, meaning stores pay a premium compared to online giants like Amazon.

Trade association director Helen Dickinson said: “Labour’s first budget is a golden opportunity to deliver on its manifesto commitment and fix the broken business tax system that is holding back investment in people, places, technology and limiting growth.”

BRC figures showed UK retail sales between July 28 and August 24 were just 1 per cent higher than the same period a year earlier.

The BRC represents brands including Sainsbury’s, Marks & Spencer and Primark, as well as online retailers such as Shein and Boohoo.

Businesses are paying 54.6p in every pound of the rateable value of their property after it rose in April.

The increase was based on the outdated September 2023 inflation figure of 6.7 percent. Current inflation stands at 2.2 percent.

A Treasury spokesman said: “We are committed to a fairer corporate tax system.”