Warehouse tax ‘dropped over fears of Trump trade war’

The warehouse tax proposal proposed by Andy Burnham during his campaign to become Makerfield MP has been dropped due to concerns that it could spark a trade war with Donald Trump, according to a leading industry body. The Prime Minister initially intended to increase business rates on "out of town" warehouses to fund cuts for high street shops, but the Chancellor has since ruled out the plan.

Allen Simpson, chief executive of UKHospitality, revealed that officials have informed him that the primary concern is that the tax would disproportionately impact American online giants like Amazon. Simpson explained that reforming the business rates system to base the bill on a percentage of a company's revenue could necessitate a significant increase in tax for Amazon warehouses.

The hospitality industry has been advocating for a more equitable distribution of business rates between high street businesses and online giants. However, retail bosses argue that the tax hike would lead to price increases for consumers. The Treasury has declined to comment on the rumors and proposals, emphasizing that decisions on tax are made by the Chancellor.

The government has announced other measures to support the hospitality sector, including a 20% reduction in business rates for pubs, and aims to deliver investment, jobs, and growth across the country.