A HM Treasury Autumn Statement policy paper on business rates says: “Following the recent consultation on an Online Sales Tax (OST), the government has decided not to introduce such a tax. A response to the Online Sales Tax consultation will be published shortly.”
Paddy Lillis – Usdaw General Secretary says: “The current business rates system is not fit for purpose, as it places bricks and mortar retailers at a significant disadvantage to online retail, action is needed to level the playing field. So it is deeply disappointing that the Government has rejected the opportunity to fund substantial reductions in business rates with an online sales tax, which could allow high street retailers to innovate, grow, protect and create jobs.
“We urgently need to level the playing field between online and bricks-and-mortar retail, something Usdaw and many major retailers have called on the Government to do. A 1% online sales levy could raise around £1.5 billion and fund a 20% cut in the current outdated and imbalanced commercial property tax. A reduction in business rates would support retailers to invest in our high streets and in the workforce, having a positive impact on communities and the wider economy.
“Today the Chancellor has opted for sticking plasters that do not offer a long-term fix to a long-term problem. In contrast, Labour is committed to fundamental reform of unfair business taxes and will provide much needed support for our high streets up and down the country, to ensure that online giants pay their fair share.”
Notes for editors:
Usdaw (Union of Shop, Distributive and Allied Workers) is the UK's fifth biggest trade union with around 360,000 members. Most Usdaw members work in the retail sector, but the union also has many members in transport, distribution, food manufacturing, chemical industry and other trades.
Autumn Statement 2022: Business Rates: https://www.gov.uk/government/publications/autumn-statement-2022-business-rates-factsheet/autumn-statement-2022-business-rates-factsheet
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