Higher sector taxes could have an inflationary impact, according to a letter to the government signed by the British Retail Consortium, British Hospitality, the Convenience Stores Association, the British Independent Retail Association and UK Active.
by Sarah Taffey Maguire, business reporter @taaffems
Thursday 16 November 2023 at 02:52, United Kingdom
The Chancellor has been called on to freeze business rates and expand the scope of exemptions as business lobby groups warn that failure to do so puts jobs, businesses and the future of the high street at risk.
A group of hospitality groups have also asked for an extension and increase of the Retail, Hospitality and Leisure (RHL) business rates relief scheme in a statement next autumn.
Failure to do so will result in the freezing of taxes paid by companies on commercial real estate Economic inflationThe groups said.
“An inflationary increase in the business rates multiplier and the removal of subsidies would be disastrous for our sectors. It would mean business failure, job losses and the closure of properties on our high streets, depriving people of their livelihoods and social enjoyments.”
Message to Counselor Jeremy Hunt And the Minister of State Michael Gove It is signed by representative bodies the British Retail Consortium, Hospitality UK, the Association of Convenience Stores, the British Independent Retail Association and UK Active.
Although the latest figures show that the rate of price increase is… Two-year lowThe signatories said that the pressures of the high cost of living are pressing on them.
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He added: “Energy prices are still at historically high levels, and we have witnessed a significant increase Wage costs (In our labor-intensive sectors) our input costs remain high.”
“For many businesses in hospitality, leisure and retail, the crisis is far from over.”
The retail, hospitality and leisure sectors collectively pay £10 billion a year, the letter said.
The groups said that if business rates rose in line with inflation, retail businesses would pay an extra £480 million and hospitality businesses would have to come up with a further £234 million.
The maximum RHL relief should amount to at least £2 million per company, the signatories said.
They added that ending the allowance would cost hospitality £630m and retail £750m.
In the Autumn Statement, the Chancellor announces spending and tax decisions and updates the House of Commons on the state of the economy.