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Govt should delay reintroduction of VAT rates, BRC
09 Mar '09
4 min read
An immediate freeze on all new business rate burdens
Retailers pay around a quarter of all business rates costs despite representing only eight per cent of GDP. This bill could rise by 30 per cent to £7 billion by 2010/11 because of the:
• Abolition of empty property rate relief - £115m/year
• Annual increase in business rates - £250m/year
• Revaluation of business rates in 2010 - £900m/year
• Introduction of Business Rate Supplements - £160m/year
The BRC is calling for an immediate freeze on all new business rate burdens and the reinstatement of empty property rate relief.
Stephen Robertson, BRC Director General, said: “Proposed property tax changes, such as the revaluation of Business Rates, could see retailers' property costs increase to £7 billion by 2010/11. The additional burden is equivalent to the average salaries of over 100,000 retail employees.
“Property is one of retailing's biggest costs, alongside our people. There is a real danger that these Government-imposed costs will result in more empty High Street stores and further job losses. Business Rates must be frozen at 2008 levels.”
The BRC is also calling for:
1. National Minimum Wage (NMW) increases to be kept below 1.5 per cent to allow retailers to maintain, and where possible, increase job opportunities.
2. A cancelation of the proposed 0.5 per cent increases in employee and employer National Insurance contributions with a view to maintaining and encouraging employment.
3. Zero VAT rates on all domestic insulation and all energy efficient products meeting Energy Saving Recommended or other 'best in class' ratings.
4. A range of measures to encourage green investments, such as business rates and council taxes to be reduced by 15 per cent where 15 per cent or more of own needs are met from on-site generation.
5. Minimal development costs for retail-led regeneration projects.
6. Increased Government support for building skills in the retail sector and its supplier base.
Retailers pay around a quarter of all business rates costs despite representing only eight per cent of GDP. This bill could rise by 30 per cent to £7 billion by 2010/11 because of the:
• Abolition of empty property rate relief - £115m/year
• Annual increase in business rates - £250m/year
• Revaluation of business rates in 2010 - £900m/year
• Introduction of Business Rate Supplements - £160m/year
The BRC is calling for an immediate freeze on all new business rate burdens and the reinstatement of empty property rate relief.
Stephen Robertson, BRC Director General, said: “Proposed property tax changes, such as the revaluation of Business Rates, could see retailers' property costs increase to £7 billion by 2010/11. The additional burden is equivalent to the average salaries of over 100,000 retail employees.
“Property is one of retailing's biggest costs, alongside our people. There is a real danger that these Government-imposed costs will result in more empty High Street stores and further job losses. Business Rates must be frozen at 2008 levels.”
The BRC is also calling for:
1. National Minimum Wage (NMW) increases to be kept below 1.5 per cent to allow retailers to maintain, and where possible, increase job opportunities.
2. A cancelation of the proposed 0.5 per cent increases in employee and employer National Insurance contributions with a view to maintaining and encouraging employment.
3. Zero VAT rates on all domestic insulation and all energy efficient products meeting Energy Saving Recommended or other 'best in class' ratings.
4. A range of measures to encourage green investments, such as business rates and council taxes to be reduced by 15 per cent where 15 per cent or more of own needs are met from on-site generation.
5. Minimal development costs for retail-led regeneration projects.
6. Increased Government support for building skills in the retail sector and its supplier base.
British Retail Consortium
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