Chancellor Rachel Reeves is reportedly exploring a new tax measure aimed at supporting traditional retail businesses. The proposed ‘Amazon tax’ seeks to increase business rates for online retailers like Amazon. This measure could form part of a larger overhaul of property taxes. Labour’s manifesto promises to reform business rates to support the high street. Over 70 retail CEOs advocate for a ‘Retail Rates Corrector’.
- The Amazon tax seeks to impose higher business rates on online platforms to aid in levelling the playing field for high street shops.
- Chancellor Rachel Reeves may initiate a consultation on the proposal post the Budget announcement on 30 October.
- Labour’s manifesto advocates for significant changes in the business rates system to encourage investment and entrepreneurship.
- The retail industry could face an additional £140m in business rates, prompting widespread calls for reform.
Chancellor Rachel Reeves is reportedly contemplating a new tax initiative colloquially termed the ‘Amazon tax’. This measure aims to impose higher business rates on online retailers such as Amazon. It forms part of a broader proposal to reform property taxes in the UK. The initiative aims to provide much-needed relief to traditional high street businesses facing increasing financial pressure.
The Chancellor’s proposal could see a consultation process being launched soon after the unveiling of the Budget on 30 October. This consultation would likely examine Amazon’s tax contributions on its UK warehouse operations, highlighting a focus on multinational companies operating within the UK.
Labour’s manifesto has long advocated for a comprehensive replacement of the current business rates system. The intent is to create an equitable marketplace between high street and online giants, better incentivise investment, address issues of empty properties, and foster entrepreneurial ventures.
Recent data from the Office for National Statistics reveals a looming burden on the retail sector, with business rates set to increase by a further £140 million due to inflation. This projection has galvanized over 70 retail CEOs to sign an open letter demanding a ‘Retail Rates Corrector’, proposing a 20% reduction in business rates for retail properties.
Such measures reflect a pressing need for adaptive economic policies that address the evolving landscape of retail, balancing the needs of online and offline channels.
The proposed tax changes by Chancellor Rachel Reeves underscore the urgent need to support the high street amidst rising business rates.
