Interviews
Chancellor urged to reduce key cost threats
20 Feb '08
3 min read
- Better tax breaks and/or preferential rates of fuel duty for those investing in more efficient vehicle fleets
2) New demands for money from local authorities
Retailers already pay more any than other sector in business rates and they are increasingly being asked to fund projects like Crossrail.
This hits retailers harder than many other businesses, as rates bills reflect retailers' heavy use of buildings compared with other sectors.
The Government is planning to give local authorities the power to add supplements to business rates. The BRC believes this will be abused as simply another stealth tax for local authorities to raise money from businesses.
BRC is calling for:
- Supplementary business rates (SBR), if introduced, to be capped at two pence in the pound – which would represent almost a five per cent increase in business rate payments
- Local businesses to be given the power to vote down any SBR plans that do not deliver adequate local economic benefits
- Ensure costs to fund Crossrail fall more proportionately on those sectors that are likely to benefit from it most, as Crossrail will cost retailers about twice the predicted benefits (Crossrail is being funded through a form of supplementary business rate)
BRC Director General Stephen Robertson said: “Retail plays a vital part in the lifeblood of the British economy, job creation, skills training and regeneration.
“With a slowdown underway, household budgets have tightened and people are more cautious about spending. As margins tighten, retailers have also been hit by higher costs. On Budget day, the Chancellor has the power to encourage further retail achievements and reduce new cost threats.
“Retailers are rightly proud of their environmental record, but compared with other industries they are being short changed on their efforts. The Chancellor should avoid discrimination by giving retailers the same benefits enjoyed by other sectors when they invest in renewable energy.
“Retailers already pay £4.5 billion a year in business rates. Supplementary business rates could add £130 million to that. The Government must guarantee tight controls to stop local authorities abusing them as another indiscriminate fund raiser.”
2) New demands for money from local authorities
Retailers already pay more any than other sector in business rates and they are increasingly being asked to fund projects like Crossrail.
This hits retailers harder than many other businesses, as rates bills reflect retailers' heavy use of buildings compared with other sectors.
The Government is planning to give local authorities the power to add supplements to business rates. The BRC believes this will be abused as simply another stealth tax for local authorities to raise money from businesses.
BRC is calling for:
- Supplementary business rates (SBR), if introduced, to be capped at two pence in the pound – which would represent almost a five per cent increase in business rate payments
- Local businesses to be given the power to vote down any SBR plans that do not deliver adequate local economic benefits
- Ensure costs to fund Crossrail fall more proportionately on those sectors that are likely to benefit from it most, as Crossrail will cost retailers about twice the predicted benefits (Crossrail is being funded through a form of supplementary business rate)
BRC Director General Stephen Robertson said: “Retail plays a vital part in the lifeblood of the British economy, job creation, skills training and regeneration.
“With a slowdown underway, household budgets have tightened and people are more cautious about spending. As margins tighten, retailers have also been hit by higher costs. On Budget day, the Chancellor has the power to encourage further retail achievements and reduce new cost threats.
“Retailers are rightly proud of their environmental record, but compared with other industries they are being short changed on their efforts. The Chancellor should avoid discrimination by giving retailers the same benefits enjoyed by other sectors when they invest in renewable energy.
“Retailers already pay £4.5 billion a year in business rates. Supplementary business rates could add £130 million to that. The Government must guarantee tight controls to stop local authorities abusing them as another indiscriminate fund raiser.”
British Retail Consortium
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