UK Loses 6,000 Shops Amid High Business Rates Impact

  • Retail industry is overtaxed compared to other sectors
  • BRC’s research shows retail pays 7.4% of all business taxes
  • Business rates contribute to 11% of total tax bill for the sector
  • UK lost 6,000 shops in five years with rates impacting two-thirds of closures
  • BRC calls for a 20% Retail Rates Corrector in Autumn Budget submission

The British Retail Consortium (BRC) claims that the retail industry is overtaxed compared to other sectors of the economy. According to new research, retail pays 7.4% of all business taxes (£33bn), which is 1.5 times more than its share in the overall economy (5% GDP. This tax bill amounts to 55% of pre-tax profits, the highest proportion among main business sectors. The BRC’s submission for the Autumn Budget proposes a 20% Retail Rates Corrector to adjust bills for all retail properties. Out of the 6,000 shops closed in the last five years, two-thirds were influenced by business rates. Helen Dickinson, BRC CEO, emphasizes that this tax burden hinders growth and job opportunities. Introducing a 20% Retail Rates Corrector would level the playing field between sectors and support the government’s commitment to fairer taxes for bricks-and-mortar businesses.

Factuality Level: 8
Factuality Justification: The article presents factual information from the British Retail Consortium’s research on retail taxes and business rates, and includes quotes from the BRC CEO supporting their argument for a change in tax policy. It also provides context on the impact of high taxes on the industry, such as shop closures and job losses. However, it does not include any irrelevant or misleading information, sensationalism, redundancy, opinion masquerading as fact, bias, invalid arguments, logical errors, inconsistencies, or fallacies.
Noise Level: 3
Noise Justification: The article provides relevant information about the tax burden on the retail industry and offers a solution to address the issue through the Retail Rates Corrector. It also highlights the impact of business rates on shop closures and job losses. The article stays on topic and supports its claims with research data.
Financial Relevance: Yes
Financial Markets Impacted: UK retail industry
Financial Rating Justification: The article discusses taxation and its impact on the UK retail industry, which affects businesses within that sector.
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 or discussed in this article.

Reported publicly: www.retailsector.co.uk www.retailgazette.co.uk