Business tax ‘could close 80,000 shops in two years’

MORE than 80,000 shops could soon close without a drastic overhaul of business rates, ministers were warned yesterday.

The British Retail Consortium (BRC) said the popularity of online shopping coupled with a growing tax burden means almost two out of three town centre shops could shut by 2017 – resulting in the loss of 800,000 jobs.

Branding business rates a ‘tax on jobs and growth’, the group called on Chancellor George Osborne to introduce reforms.

The tax brings in an estimated £28billion a year for the Treasury, but critics say it disproportionately punishes retailers with bricks and mortar shops as opposed to those based online.

Mr Osborne announced a review into the tax in last year’s Autumn St at ement, promising to deliver its finding by next year’s Budget.

The BRC highlights research showing that the number of town centre shops fell from 148,990 in 2004 to 129,121 ten years later.

It estimates that even if all store leases expiring in the next two years are renewed, there will still be 8,073 fewer shops by 2017 as many go out of business.

Last night a Government spokesman said: ‘[We are] committed to supporting high streets and have provided l ocal shops and businesses with a billion-pound package of investment that includes targeted business rate discounts.’