Bring ‘punishing’ high street taxes in line with banks, Healey urged

John Healey has been urged to reduce the "punishing" tax burden faced by the retail and hospitality industries, which is higher than any other sector. According to new analysis by the British Retail Consortium and UK Hospitality, hospitality businesses pay 82p in taxes for every pound, while retail pays 72p, compared to the 40p paid by banks.

Allen Simpson, CEO of UKH, stated that these figures demonstrate the "shocking" overtaxing of Britain's high street firms. He called on the Chancellor to address the unfairness of this tax burden at next month's Budget, emphasizing that local pubs, neighborhood restaurants, and coastal hotels are paying a tax rate double that of a bank.

The BRC and UKH are calling on Healey to significantly cut high street taxes, arguing that it is essential for businesses to survive and reach their potential. Retail and hospitality firms pay the most taxes in the UK economy's 11 sectors, with their combined payments amounting to £62bn in the recent financial year. Only two other sectors, information & communications and tech & sciences, pay more than the average of 50p in every pound.

Construction has the lowest tax burden. The trade bodies argue that hospitality and retail businesses are particularly exposed to the rising cost of doing business and that the Chancellor must reduce high-value business rates multipliers to revitalize British high streets. Helen Dickinson, CEO of the BRC, emphasized that the punishing tax burden has consequences such as job losses, shuttered shops, and missed opportunities for growth and lower prices.

UKH's Simpson added that the government must create an environment where hospitality and the high street can thrive. A government spokesperson stated that the Chancellor has already taken steps to support the hospitality industry, such as cutting business rates by 20% for pubs, social clubs, and live music venues. However, the government maintains that decisions on tax are made by the Chancellor at fiscal events.