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

Textiles | On 22nd Apr 2017

Strong rupee & weak trade to affect textile exporters

Textile and apparel exporters' earnings and EBITDA margins will be...

Textiles | On 22nd Apr 2017

Myntra acquires InLogg

With an aim to strengthen supply chain and logistics, Flipkart-owned...

Textiles | On 22nd Apr 2017

Aditya Birla Group launches new variant Liva Crème

After its successful launch of high quality fabric Liva in 2015,...

Interviews View All

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Prabu Mohanram
Balavigna Weaving Mills Pvt Ltd

The biggest challenge that the weaving industry faces is high price

Kevin Nelson
TissueGen

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

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Pranav Mishra
Huemn

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

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
April 2017

April 2017

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

SUBSCRIBE


Browse Our Archives

GO


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