UK High Street Needs a Digital-Age Makeover
- MPs call for business rates reform to save high street
- Dated policies and unfair tax regime need reforming
- Highlighted disparity between taxes paid by bricks-and-mortar retailers and online businesses
- Amazon pays 0.7% tax on UK turnover compared to physical retailers’ 1.5%-6.5%
- Recommends online sales tax for equalization
- Reduction in business rates for high street retailers
- 12-month holiday from rate increases for investment
- High street needs to adapt and focus on green space, leisure, arts, and culture
- Chair of committee urges local authorities to innovate and develop long-term strategies
- Central government must provide powers and financial backing
The UK’s housing, communities, and local government committee has called for the reform of outdated policies and an unfair tax regime to save high streets and town centers. The disparity between taxes paid by brick-and-mortar retailers and online businesses was highlighted in a report, stating that physical stores pay more than their fair share. Amazon pays just 0.7% tax on its UK turnover compared to physical retailers’ 1.5% to 6.5%. The committee recommended an online sales tax and suggested reducing business rates for high street retailers and offering a 12-month holiday from rate increases to encourage investment in properties. It also emphasized the need for high streets to adapt by focusing on green space, leisure, arts, and culture. Clive Betts MP, chair of the committee, stated that local authorities must innovate and develop long-term strategies tailored to their communities with financial support from central government.
Factuality Level: 8
Factuality Justification: The article provides accurate information about the committee’s report on high street reforms, including specific recommendations for tax changes and support for local authorities. It presents a balanced view of the challenges faced by high street retailers and acknowledges the need for adaptation to survive. However, it could provide more context or data to support some claims (e.g., the 12-month holiday from rate increases) and might benefit from including expert opinions on the proposed solutions.
Noise Level: 4
Noise Justification: The article provides relevant information about the challenges faced by high street retailers due to online competition and offers some potential solutions such as tax reforms and financial support for local authorities to adapt their town centers. It also highlights the need for innovation and new strategies. However, it could benefit from more in-depth analysis of long-term trends or possibilities and exploring consequences on various stakeholders.
Financial Relevance: Yes
Financial Markets Impacted: The report highlights the disparity in taxes paid by brick-and-mortar retailers and online businesses, recommending an online sales tax and suggesting a reduction in business rates for high street retailers. This could impact financial markets through changes in taxation policies and affect companies’ profitability.
Financial Rating Justification: The article discusses the need for reforming tax policies to support physical retailers and suggests an online sales tax, which would directly impact financial markets and companies involved in these sectors.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the text.
www.retailsector.co.uk