New West End Company has urged the UK Government put a business rate reform plan in place, which it says would remove all the inequality that exists between high street and online retailers.
They have called for the introduction of a revenue based tax to replace business rates for online businesses.
According to the British Retail Consortium, retailers account for 6% of GDP but pay 26% of business rates. In addition, New West End Company's figures show that last year’s rates revaluation saw business rates for West End stores rise by an average of 80%, with some shops experiencing an increase of over 130%. Sir Peter Rogers, chairman of New West End Company, said: “Business rates are currently the biggest tax that high street retailers pay, accounting for nearly half [45%] of retailers tax bill. The current structure of business rates, whereby they are linked to the value of occupied property, not economic performance, provides online retailers with an unfair advantage and a 90% rate discount in an already struggling bricks and mortar retail environment."
He added: “London’s West End is a major contributor to the UK economy with retailers generating over £9 billion in sales a year and employing over 80,000 people, if we do not act now we damage the ability of those business to survive and continue to drive our economy.”
During the next few months, New West End Company, whose members include Selfridges, Marks and Spencer and Fenwick’s, will ask the Chancellor to consider the proposal.
