Business rates, the property tax on all businesses including shops, pubs and hotels, are due to increase in April next year based on inflation. Today, the Office for National Statistics (ONS) revealed that Consumer Price Index (CPI) inflation returned to an equal 40-year-high of 10.1%. Looking at the current burden of taxation, retail represents only 5% of the UK economy, yet pays 25% of business rates.

Paddy Lillis – Usdaw General Secretary says: “We have long called for the Government to work with Usdaw and retailers to develop an industrial strategy and recovery plan for retail. The scale of the challenge the industry faces is huge and store closures are scarring our high streets and communities. There are substantial issues that need to be addressed like rents, rates and taxation.

“The current business rates system is not fit for purpose, as it places bricks and mortar retailers at a significant disadvantage to online retail. In effect this amounts to nothing more than an unfair ‘Shops Tax’ and action has to be taken to level the playing field.

“Cutting the ‘Shops Tax’, particularly as it is set to rise so sharply, will help protect shops from closure, encourage growth in high street retail, reinvigorate our struggling town and city centres, allow retailers to innovate and importantly protect and create jobs. That is the best way to tackle the problem of empty shop units.

“It is crucial that any online sales tax is used to fund a reduction in business rates and we have joined with major employers to support this approach. The burden of business rates on bricks and mortar retailers is unfair and a serious threat to jobs. 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.

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.
 
Usdaw Save our Shops campaign: www.usdaw.org.uk/Campaigns/Save-Our-Shops-(1)
 
For Usdaw press releases visit: http://www.usdaw.org.uk/news and you can follow us on Twitter @UsdawUnion