New research, unveiled today by the British Retail Consortium (BRC) in its budget submission, shows that the retail industry is overtaxed compared to other sectors of the economy. Retail pays 7.4% of all business taxes (£33bn) - a share 1.5 times greater than its share of the overall economy (5% GDP).
This bill amounts to 55% of the industry’s pre-tax profits, the highest proportion, along with hospitality, of all main business sectors. Of this total bill, 11% of profits is made up of business rates, the highest of all business sectors.
The findings come as the BRC puts forward its submission to the Autumn Budget. Helen Dickinson, chief executive (pictured), said: “Our research conclusively proves what retailers have known for years, that the industry is paying far more than its fair share of tax. The impact of this is clear to see on high streets across the country, with shops shut, jobs lost and a social as well as economic cost. The rates bill also means missed opportunities as other investments, which would drive growth in the longer term, don’t happen.”
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