Home / Knowledge / News / 'Extra tax burden wrong under present circumstances' - BRC
'Extra tax burden wrong under present circumstances' - BRC
20
Nov '08
Retailers' viability and retail jobs will be put at risk if the Government continues to increase costs as trading conditions worsen, warns the British Retail Consortium (BRC).

Updating its submission to the Chancellor ahead of next week's Pre-Budget Report (PBR), the BRC is today (Wednesday) warning that 'fiscal stimulation' should not be confined to cuts in personal taxation because businesses need help too.

Retailers are on the verge of being hit with a series of substantial business rate increases. These will come at a time when their margins are being squeezed dangerously by tough trading conditions.

Next April's Business Rates increase would normally be based on this September's five per cent RPI. But no RPI has been higher since July 1991 and RPI has already fallen sharply.

And, a year later, retailers face a huge 16 per cent cumulative increase in Business Rates liability as a result of the 2010 Revaluation. This compares with increases of 3.1 per cent for office occupiers and 1.5 per cent for industrial occupiers.

Stephen Robertson, British Retail Consortium Director General, said: “Personal tax cuts are not the only form of 'fiscal stimulation' needed. The Government should revise its plans to batter retailers with a range of extra burdens which can only increase the pressure on them and ultimately push up shop prices.

“Conditions are tough for customers and retailers and they'll be tougher through 2009. Our latest Retail Sales Monitor shows like-for-like sales have now fallen in seven of the last eight months. Eighty-five per cent of customers believe we are already in recession and are reining in spending to match.

“Retailers are crucial to jobs, customers and communities. In recession our role is even more important. Government should be helping, not hindering. The Chancellor must use the Pre-Budget Report to reduce present and future costs.”

The BRC is calling on Alistair Darling to ensure:
-Reduced local tax burden, An affordable increase in business rates in 2009 – not one based on September's, seventeen-year-high, RPI inflation of 5 per cent;
-No extension of local tax raising powers, such as Business Rate Supplements (BRS);
-The re-introduction of Empty Property Rates Relief, which was abolished in April;
-Postponement of the Business Rates Revaluation, currently planned for 2010.

Stephen Robertson, BRC Director General, said: “Business Rates penalise retailers simply because they use a lot of property. The Treasury's own analysis shows retail pays 27 per cent of the tax but makes up only 11 per cent of businesses. With tough trading conditions getting tougher, it's vital that the burdens on hard-pressed retailers are not increased further.

"Abolition of Empty Property Rate Relief is adding substantial extra costs. Business Rate Supplements will pile more on top. Next April's business rates increases and the expected enormous increases coming from Rates Revaluation in 2010 would only make things worse."


Must ReadView All

EU renews GSP+ scheme for Pakistan 2 years

Apparel/Garments | On 24th Feb 2018

EU renews GSP+ scheme for Pakistan 2 years

Pakistani exporters can enjoy preferential duties on exports to the...

Surat wary of e-way bills

Textiles | On 24th Feb 2018

Surat wary of e-way bills

There is no respite for Surat’s textile manufacturers and retailers....

Retailers choose sides in Alibaba-Tencent battle in China

Apparel/Garments | On 24th Feb 2018

Retailers choose sides in Alibaba-Tencent battle in China

Two big Chinese firms— Alibaba Group Holding Ltd and Tencent Holdings ...

Interviews View All

Arvind Saraf
Triveni Sarees

e-Commerce is still evolving fast with constant flux and surprises

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Sandip Bhojani, Manthan Patel

Krypthm Tradelink LLP is a Surat-based manufacturer of westernwear....

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Anisha Chaudhari
Threads & Shirts

Threads & Shirts is a freshly-tailored concept providing men/women a...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

February 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
70.6%
No
12.7%
Skip
16.7%

Total Votes: 102

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.7%
No
29.4%
Skip
6.9%

Total Votes: 102

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
88.2%
No
8.8%
Skip
2.9%

Total Votes: 102

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
83.3%
No
7.8%
Skip
8.8%

Total Votes: 102


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search