‘Smoke and mirrors’: Why high street still faces a £250m tax hike under Healey
Andy Burnham propelled himself to Downing Street by pledging a revival of Britain’s struggling high streets. Felix Armstrong asks: has John Healey delivered it? Among the sectors clamouring for John Healey’s attention ahead of his maiden Budget, none were louder than those calling for the government to revitalise Britain’s ailing high street retailers. Shuttered shops, [...]
John Healey, newly appointed Chancellor, has unveiled a £250m tax hike for Britain’s high streets in his first Budget, leaving retailers disillusioned. Andy Burnham, the Prime Minister, had campaigned on revitalising town centres, but Healey's policies are being labeled as "smoke and mirrors" by the British Retail Consortium (BRC).
While Healey promised to free 70,000 more businesses from business rates relief, raising the threshold from £12,000 to £18,000, the BRC claims the policy will still result in a 3.5% increase in business rates for affected industries, totaling £250m in additional bills for April. BRC chief Helen Dickinson stated that the rising costs will further burden struggling high streets already dealing with empty units and rising expenses.
Retailers had hoped for significant cuts to employment costs and meaningful changes to business rates, but the Budget failed to deliver. The BRC's chief executive cited the lack of meaningful VAT relief for hospitality and the restoration of tourist tax refunds as further disappointments. Critics argue that framing a £250m increase in business rates as a "freeze" is an underhand trick.
Despite Burnham's commitment to the cause, retailers feel let down by the Budget's failure to address their core concerns.
Written by urgent.news from City AM's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
