Retailers: Business Rates

Lord Kennedy of Southwark Excerpts

Monday 8th April 2019 Lords Chamber

[Lord Bates]

Let me refer to a quote from the British Retail Consortium. It looked at this situation, and said:

“We fail to see how adding additional new taxes to the industry is really going to resolve the challenges we currently face”.

John Lewis said,

“this would actually have a detrimental effect … high streets need successful retailers with both a physical and online presence”.

I am not saying that this is easy and straightforward. It is complex, but the Government are seeking to come up with flexible solutions that address the concerns.

[Lord Kennedy of Southwark (Lab Co-op)]

My Lords, in addition to the measures outlined by the noble Lord, what is the overall government strategy to deal with these matters?

[Lord Bates]

The overall strategy, if the question is about business rates, is pretty straightforward: we collect about £25 billion in business rates, about 25% of which comes from the retail market and the remaining 75% from offices and industrial premises. At the moment, we are seeing the business rate book, if you like, increasing in value. Through the retention scheme, local authorities will get an extra £2.5 billion as a result of the growth of businesses in this country. At the same time, we are looking at how we deal with online businesses to ensure that there is fair taxation. That was the purpose behind the digital services tax.