Hunt pledges to save high street with rates cut
JEREMY HUNT has pledged to exempt hundreds of thousands of firms from business rates if he becomes prime minister, in an effort to save Britain’s ailing high streets.
In an extension of Philip Hammond’s £1.5billion plan to regenerate town centres, the Tory leadership contender intends to scrap taxes for nine out of 10 high street shops.
The move will save newly exempted businesses up to £6,500, and will benefit an estimated 24,500 businesses based in Birmingham, Manchester and three other large English cities.
The announcement builds on his recent promise to cut corporation tax from 19 per cent to as low as 12.5 per cent, a policy which is set to cost an estimated £13billion a year.
Mr Hunt said last night that his proposals would “give a new lease of life to the British high street” and provide “hard working local businesses an enormous cash boost”.
“It was once said Britain was a nation of shopkeepers. But if we don’t act this will no longer be the case,” he said.
“Too many small businesses are being put out of business by tax bills they can’t afford to pay. While many people choose to shop online, there is a clear demand for a local choice too.
“And the current system leaves the taxpayer out of pocket, shopkeepers out of a job and can deprive local people of places to spend time with friends and family.”
Mr Hunt said his administration would reform the current retail discount rate so that businesses that qualified would see their entire business rate bill cancelled. At present those with a rateable value below £51,000 are eligible only for a 33 per cent reduction in their bill.