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Concern: Louboutin founder Christian Louboutin
Leading retailers have warned Labour that it must deliver on its election promises to reform the broken business tax system.
Business taxes are a local tax paid based on the value of a commercial property, meaning stores pay a premium compared to online giants like Amazon.
Currys chief executive Alex Baldock has urged new chancellor Rachel Reeves to put replacing the property tax system for shops at the top of her to-do list.
The retail sector supports three million jobs and she believes it could “play a leading role” in helping Prime Minister Keir Starmer “drive growth, jobs and prosperity for all”. She added: “Above all, we must urgently address the damaging, unfair and harmful burden of corporate tax.”
There will also be pressure on Labour to heed calls to scrap a hated tourist tax and reintroduce a valuable VAT-free shopping incentive for overseas visitors.
Labels including Louboutin (founded by Christian Louboutin), Mulberry, Marks & Spencer, Kurt Geiger and Selfridges have all said the lack of duty-free shops is deterring tourists from spending in UK stores. The Labour manifesto promises to “replace the business tax system, so we can raise the same revenue but in a fairer way”.
He says the system “discourages investment, creates uncertainty and places an undue burden on our high streets.”
Retailers will be keen to see the details of Labour’s reforms and for swift action after years of asking ministers to make changes.
This week, Sainsbury’s also called for reform, saying it is “essential to growing our economy”. Businesses are paying 54.6p in every pound of rateable value of their properties after it was hiked in April. Retailers were furious that the increase was based on the outdated September 2023 inflation figure of 6.7 per cent.
High Street bosses have also called for adjustments to funding for apprenticeships so that rules are more flexible and there are fewer delays in planning. Rachel Reeves has insisted she wants to become the most “pro-growth” chancellor in the UK’s history.
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