Save high street by creating ‘level playing field’ with online rivals, Burnham urged
Summary
Senior adviser Andy Haldane has urged Andy Burnham and the UK government to tax online sales more than in-store sales to help struggling high streets. The government’s upcoming budget plans to include measures like a tax crackdown on online marketplaces and changes to business rates to support physical shops.Key Facts
- Andy Haldane recommends higher taxes on internet sales compared to physical shops to help high streets compete.
- The UK prime minister and Chancellor John Healey are preparing a budget with new measures for town centers.
- The budget may force online marketplaces like Amazon and eBay to collect VAT from large sellers, possibly raising £1 billion.
- There is a plan to raise the rent valuation threshold to exempt smaller businesses from paying business rates.
- Business rates are considered a heavy financial burden for smaller shops, contributing to high street decline.
- Big retailers and think tanks support taxing online sales to lower business rates for physical stores.
- The government has already increased taxes on warehouses used by online retailers earlier this year.
- Some business leaders worry that taxing US tech firms could lead to trade problems with the US government under President Trump.
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