Retail Giant Fears Negative Impact on Shops Amid Consultation End

  • Marks and Spencer warns chancellor about potential damage of online sales tax
  • Government’s consultation on online sales tax ends on May 20th
  • Online sales tax aimed to help fund reduction in business rates tax
  • M&S CFO Eoin Tonge believes tax would damage high streets further
  • Multi-channel retailers may cut least profitable stores to offset cost of new tax

Marks and Spencer has expressed concerns over the potential negative impact of an online sales tax, as the UK government’s consultation on its implementation comes to a close. The government believes the tax could help fund a reduction in business rates tax. However, M&S CFO Eoin Tonge argues that it would damage high streets further, with multi-channel retailers likely cutting their least profitable stores to offset costs. A recent study by Colliers found 89% support for the new tax, but Tonge believes it will harm shops and investment in struggling areas.

Factuality Level: 7
Factuality Justification: The article presents a balanced view by including both the perspective of Marks and Spencer (M&S) and the results of a recent study conducted by Colliers. While M&S argues that an online sales tax would damage high streets further, the study shows overwhelming support for the introduction of such a tax to help retailers. The article provides relevant information without any clear signs of sensationalism or misleading content.
Noise Level: 3
Noise Justification: The article provides relevant information about Marks and Spencer’s stance on an online sales tax and its potential impact on high street retailers. However, it lacks a comprehensive analysis of the issue and does not explore other perspectives or provide actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: Marks and Spencer, high street retailers
Financial Rating Justification: The article discusses the potential impact of an online sales tax on Marks and Spencer and other high street retailers, which could affect their profitability and operations. This has implications for financial markets as it involves changes in taxes that may impact their revenue and business decisions.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.

Reported publicly: www.retailsector.co.uk