The British Retail Consortium (BRC) has proposed a 20% adjustment on retail business rates.
- New research indicates the retail sector is disproportionately taxed compared to other industries.
- The proposal aims to level the playing field for physical retail spaces.
- Without intervention, thousands of retail shops face potential closure over the next decade.
- The BRC highlights the urgent need for government action in the upcoming Budget.
The British Retail Consortium (BRC) has urged the government to implement a 20% reduction in business rates for retail properties. This move comes ahead of the Budget on the 30th of October and is intended to address the pressing issue of overtaxation within the retail sector.
According to the latest research unveiled by the BRC, the retail industry currently shoulders 7.4% of all business taxes, amounting to £33 billion. This figure significantly contributes to the 55% of pre-tax profits in the sector, highlighting the financial strain placed on retail businesses compared with other economic sectors.
The proposed ‘Retail Rates Corrector’ seeks to create parity for brick-and-mortar stores, which face greater financial burdens than their online counterparts. The BRC’s proposal surfaces amid concerns that without decisive intervention, approximately 17,300 retail shops could close within the next ten years, exacerbating the challenges faced by the high street.
As part of broader efforts to support the recovery of the fashion retail sector, the campaign led by Drapers, known as the ‘Reset Fashion Retail’, is advocating for immediate government attention to three critical areas: business rates, retail rents and leases, and local regeneration.
The BRC’s call to action reflects a wider industry demand for equitable tax practices that recognise the unique operational challenges of physical retail environments, aiming to rejuvenate the high street and sustain long-term economic viability.
The BRC’s proposal underscores the critical necessity for government intervention to support the retail industry in maintaining economic stability.
