Home / Knowledge / News / Retailer body warns of business rates stealth tax
Retailer body warns of business rates stealth tax
03
Dec '08
Some local authorities could use the Business Rate Supplementary (BRS) Bill powers, announced following the Queen's Speech today (Wednesday), to saddle retailers with new tax costs when they can least afford it, warns the British Retail Consortium (BRC).

For the first time in almost twenty years local authorities will be given the power to raise revenues directly from businesses. With retailers already paying more than any other sector in business rates, the supplements would add an extra £160 million a year to their tax bills.

The BRC has consistently opposed the BRS proposals, urging the Government to ensure there are sufficient safeguards to ensure local authorities only use the tax to pay for genuinely business-boosting infrastructure projects, not simply to fund general expenditure.

The BRC is especially disappointed additional safeguards have not been introduced in the Bill, including failure to deliver a compulsory business vote before the introduction of any BRS
A clear framework to hold local authorities to account in developing and implementing BRS proposals

Stephen Robertson, BRC Director General, said: “At a time when retailers are being hit by rising costs and falling sales, this Bill gives local authorities the power to clobber businesses with a hefty new stealth tax.

“Retailers already pay £5 billion a year in business rates – more than any other sector – and BRS would see them forking out an extra £160 million a year. When you combine this with an onslaught of other property cost increases, including the 2010 Rates Revaluation and the end of Empty Property Rate Relief, this is another burden on retailers when they can least afford it.

“Retail's responsible for 3 million jobs in the UK. It is vital to local economies, to regeneration and communities. As we head into recession the Government should be reducing the burdens on retailers, not compounding them.”

Alex Gourlay, Managing Director Boots UK, said: “This is the wrong tax at the wrong time. It will simply lead to increased costs for retailers at a time when the sector's margins are already being squeezed by a wide range of additional property costs and trading conditions are challenging for the sector.”

Lucy Neville-Rolfe, Corporate and Legal Affairs Director at Tesco, said: “Businesses that are property dependent, including retail, are facing into the worst recession for many years. It is very unfair that rates for next year will increase by 5 per cent as they are based on September 2008 figures when inflation was very high.

Retailers will also suffer from the pending revaluation which was conducted in early 2008 when property prices were much higher. Government must act now to ease this triple whammy of large increases in business rates, a revaluation done at the height of the property market and the added threat of supplementary business rates."


Must ReadView All

Alliance to form joint entity for safety in factories

Textiles | On 24th Apr 2018

Alliance to form joint entity for safety in factories

On the 5th anniversary of the Rana Plaza Collapse, The Alliance for...

China’s Alibaba partners with Thailand for digital trade

Textiles | On 24th Apr 2018

China’s Alibaba partners with Thailand for digital trade

China’s Alibaba Group recently signed an agreement with the Thai...

Courtesy: Skineez Skincarewear

Apparel/Garments | On 24th Apr 2018

Skineez, Walmart partner for smart wearables

Skineez Skincarewear, a leading cosmotextile skincarewear company,...

Interviews View All

Headhonchos
Textiles & allied industry

Textiles industry is always in the forefront in accepting latest technology

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Yash Maniyar
Rekha Maniyar

Indian fashion market is growing at a staggering rate

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

Riddhi Jain

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

Tom Adeyoola

Describing itself as the best body shape and garment fit company in the...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Anisha Chaudhari
Threads & Shirts

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

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Igor Chapurin
Chapurin

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

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

Leave your Comments


April 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
69.9%
No
12.6%
Skip
17.5%

Total Votes: 103

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
63.1%
No
29.1%
Skip
7.8%

Total Votes: 103

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
87.4%
No
8.7%
Skip
3.9%

Total Votes: 103

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
82.5%
No
7.8%
Skip
9.7%

Total Votes: 103


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