Retail could pay £7bn in business rates by 2010
Jan 12 2009
New government plans could lead to the retail sector paying out £7 billion a year in business taxes by 2010/11, according to the British Retail Consortium (BRC).
The organisation has warned that the combined cost of taxes rises, including increased business rates and the loss of empty property relief, could add £1.6 billion to the sum already paid by the industry.
Research from the BRC shows that the retail industry is more sensitive to changes in property costs as it is more property-dependent than other sectors.
Stephen Robertson, director general at the BRC, says: 'The government must revise its plans to impose a range of extra burdens, which can only increase the pressure on retailers and destroy more of the UK's three million retail jobs.'
He adds that the government should reintroduce 50 per cent empty property rate relief, not increase any business rates in April and ensure safeguards are put in place on new plans which allow local authorities to raise business rates from April next year.
The Conservatives have previously supported proposals from businesses to give full rate relief on empty properties, saying currently the tax increases the burden on companies.
Another plan which should see a turnaround, according to the BRC, is basing business rates on the rent the property received in April 2008, as market conditions have altered since then.
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