UK Conservatives pledge to scrap business rates for high street retailers

The UK’s Conservative party has said they would abolish business rates for high street businesses, including retailers and pubs, if they were to win the next election.

During a conference in Manchester, shadow chancellor Mel Stride said “the burden of Labour’s tax rises” have been "simply too much to bear”. Stride further claimed that 89,000 jobs had been “destroyed” among the hospitality sector since Labour’s budget was introduced last year.

“Under Labour, many have seen their business rates double. We need to get business rates down,” Stride said, pointing to “pubs closing, shops sitting empty, high streets hollowed out”.

“So today I can announce that as a direct result of getting public spending under control, a future Conservative government will completely abolish business rates for shops and pubs on our high streets,” he added.

Stride outlined plans to cut 47 billion pounds on public spending by restricting welfare payments, narrowing the Civil Service and lowering foreign aid spending.

“Where Labour have failed, we will bring down our spiralling welfare bill, completely overhaul our benefits system, and put an end, once and for all, to the human tragedy of millions being consigned to our life on benefits,” he continued.

Stride’s remarks were welcomed by the British Retail Consortium (BRC). The chief executive of the organisation, Helen Dickinson, said it was good the shadow chancellor recognised challenges that come with the current business rates system for high streets.

“Retail is 5 percent of the economy, yet pays over 20 percent of all business rates,” she added. “The current system is not fit for purpose and retailers support any measures which will help bring their business rates burden down and enable them to invest more in local high streets.”

Large-format retail at risk under proposed changes in November Budget

Labour’s budget shifts – particularly in regards to a rise in certain business costs that have increased taxes and employment bills – have been largely unpopular among the retail industry.

The BRC has been among representatives cautioning the government of long-term impact if retail continues to be impacted by such changes.

Most recently, the organisation stated that if retail was included in the government’s new business rates surtax on locations valued over 500,000 pounds, 400 large-format retail stores could be at risk of closure.

This would add to the 1,000 larger stores to have closed over the last five years due to the pressure of rising rates bills, among other cost-related factors.

Surtax changes are currently due to be addressed in Labour’s November Budget, with the BRC calling on members of parliament to back those calling to ensure no shop pays more in rates as a result of such changes.

“If the new rates surtax on large commercial premises includes shops, then it will be households who pay the price through higher prices for food and other essentials and less investment in local shops and jobs,” Dickinson said in her latest commentary.