MPS call for online sales tax

Blueprint for High St ‘renewal’ A proper fix, not sticking plasters

RETAIL giants like Amazon should be hit with an online sales tax to “level the playing field” for our ailing high streets, MPS say.

A cross-party group said reforming outdated policies and an unfair tax regime would help depressed areas that face becoming ghost towns.

In a boost to the Mirror’s High Street Fightback campaign, the report urges Ministers to go “further and faster” to “begin a period of renewal”.

Business rates are a key issue with Amazon’s bill amounting to around 0.7% of its UK turnover while bricks- and-mortar shops are hammered with rates of 1.5% to 6.5%, the Commons Housing, Communities and Local Government Committee warned.

And it added that with online sales at 20% and growing, the future for high streets is “increasingly bleak”.

Chair Clive Betts said: “The growth of online shopping has profoundly changed retail and the knock-on impact on high streets has been stark.

“It is likely the heyday of the high street primarily as a retail hub is at an end. However, this need not be its death knell. Business rates must be made fair. They are stacking the odds against businesses with a high street presence. Tax reforms are needed to level the playing field between online and high street retailers and we urge the Government to investigate all options, including an online sales tax.”

Other recommendations include a rise in VAT and “green taxes” on deliveries and packaging.

The Local Government Association said: “The business rates system needs to be modernised to ensure sectors such as online businesses make a fair contribution.” And Federation of Small Businesses chair Mike Cherry added: “Currently, the tax system favours big online companies over independent businesses on the high street, already facing a tough trading environment.” But High Streets Minister Jake Berry ruled out an online sales tax, claiming it “would be passed on to consumers”. He added: “The Government has [put] a plan for the high street at the centre of the Budget, backed by £675million.”

STACKED ODDS MPS say likes of Amazon have edge BRITAIN’S high streets are in a sorry state. The underlying problems have been apparent for years: the growth of out-of-town centres and online shopping.But the overall economy is now stagnant, perhaps heading for recession. Figures show sales in recent months falling on the high street with the worst Christmas since the financial crisis. That is why I’m happy to back the Mirror’s High Street Fightback campaign.Our economy barely grew in the last three months of 2018 and actually shrank in January.Uncertainty about what will happen after March 29 is hitting businesses and consumers hard.But Brexit and weak demand are not the root cause. High street businesses pay onerous business rates while web firms largely bypass the system.This Government introduced a modest tax on online companies but it is too little, too late.And little has been done to reform onerous business rates.Instead, sticking plaster was applied in the form of reliefs for the smallest firms. It is time to replace this damaging system with a levy on commercial land values.

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