Government rejects an Online Sales Tax - Budget measures on business rates are only a sticking plaster says Usdaw

Paddy Lillis – Usdaw General Secretary says: “The current business rates system is not fit for purpose, as it places bricks and mortar retailers at a significant disadvantage to online retail, action is needed to level the playing field. So it is deeply disappointing that the Government has rejected the opportunity to fund substantial reductions in business rates with an online sales tax, which could allow high street retailers to innovate, grow, protect and create jobs.

“We urgently need to level the playing field between online and bricks-and-mortar retail, something Usdaw and many major retailers have called on the Government to do. A 1% online sales levy could raise around £1.5 billion and fund a 20% cut in the current outdated and imbalanced commercial property tax. A reduction in business rates would support retailers to invest in our high streets and in the workforce, having a positive impact on communities and the wider economy.

“Today the Chancellor has opted for sticking plasters that do not offer a long-term fix to a long-term problem. In contrast, Labour is committed to fundamental reform of unfair business taxes and will provide much needed support for our high streets up and down the country, to ensure that online giants pay their fair share.”