Budget 2021: Northern Tory MPs call for business rates cut to ‘save High Streets’on March 1, 2021 at 9:18 am

- Advertisement -
- Advertisement -
- Advertisement -
- Advertisement -

Writing ahead of the Budget, the MPs say the tax should be cut now and reformed in the long term.

Nottingham

image copyrightPA Media

Forty-five Conservative MPs from constituencies in the North of England have urged the chancellor to cut business rates in England to help “save the High Streets”.

Writing to the chancellor ahead of the Budget, the MPs said the tax should be cut from 50% of market rent to 35%.

Rishi Sunak has promised to offer businesses support while Covid restrictions remain in place.

However Labour is set to criticise his approach to the pandemic.

In a pre-Budget speech, the shadow chancellor Anneliese Dodds will also argue that the pandemic has exposed “the weaknesses of 10 years of Conservative mismanagement of our economy”.

On Wednesday, Mr Sunak will use the Budget to set out the government’s tax and spending plans following a year of financial disturbance and high government borrowing brought on by the coronavirus pandemic.

He is facing pressure from some – including the former Conservative Chancellor Ken Clarke – to raise taxes in order to repair public finances.

However, others have argued that taxes could hinder the country’s recovery from Covid-19.

And now a group of MPs from the chancellor’s own party – known as the Northern Research Group – have urged him to cut the tax paid by shops.

The tax is calculated based on the value of a business’s property. As part of emergency pandemic measures introduced last year, the government brought in a business rates holiday, but this is currently due to end in April.

In a letter to Mr Sunak, the MPs – many of whom represent traditional Labour seats won by the Conservatives at the last election – argue that the burden of business rates is falling on areas most in need of support.

They say cutting the tax, when it is reintroduced, would “ensure retailers have the confidence to invest in their bricks and mortar stores and save High Streets across the country”.

Although they acknowledge that the business rates holiday “undoubtedly saved hundreds of retail businesses”, they also call for “longer-term fundamental reform” to help High Street shops compete against online retailers.

On Sunday, the government announced a £5bn grant scheme to help High Street shops and hospitality reopen as the lockdown is eased.

Asked about introducing a sales tax to target online retailers such as Amazon, Mr Sunak said he was trying to reach an international agreement with other countries “on how to tax these large multinational digital companies properly”.

2px presentational grey line
Analysis box by Adam Fleming, Chief political correspondent

The main focus of the Budget will be support for people and businesses in, what the government hope will be, the last, difficult part of the Covid-19 crisis. That’s why the Treasury has already announced another £5bn of grants for businesses that are still closed.

Despite the publication of the roadmap for lifting the lockdown in England, there’s still uncertainty about the future.

And so the Chancellor will “level with” people about “the challenges” ahead for the public finances rather than setting out specific plans for raising more money and reducing borrowing.

They will come later in the year, and will almost certainly include a gradual increase in corporation tax. Although the Treasury isn’t commenting on that now.

The economy performed better than expected at the end of last year, then worse at the start of this year because of the new lockdown.

But the Bank of England is predicting bumper economic growth, thanks to a combination of the vaccine and households raring to spend money they’ve saved. That could make the chancellor’s job a bit easier.

2px presentational grey line
Anneliese Dodds

Meanwhile Labour’s shadow chancellor Anneliese Dodds will make a speech arguing that a decade of “Conservative mismanagement of the economy” and “12 months of irresponsible decision making” from the chancellor has financially damaged the country.

In a speech to Bloomberg in London, Ms Dodds will accuse her counterpart Mr Sunak of implementing “a triple hammer blow of council tax rises, social security cuts and pay freezes”.

She will call on the government to extend Covid support measures including the furlough scheme, the business rates holiday, the reduced rate of VAT and the £500 payment for those self-isolating.

The shadow chancellor is also expected to attack the government for wasting money citing “£22bn spent on the Test and Trace system, £150m spent on unsafe PPE and £2bn on contracts to businesses with clear links to the Conservative party, with no tender at all”.

Budget banner top
Budget banner bottom

She will say that a Labour government would bring forward £30bn of planned investment “to support the creation of 400,000 new green jobs” and would support 100,000 new businesses by expanding start-up loans.

Speaking to the BBC’s Andrew Marr on Sunday, Mr Sunak said he had responded to the pandemic “generously and comprehensively”.

“We went big, we went early and there’s more to come,” he said.

“My priority is to keep supporting British families, businesses and people through this crisis – I said at the beginning I would do whatever it took to do exactly that and I remain committed to that and you’ll see more of that in the Budget.”

- Advertisement -

Discover

Sponsor

Latest

South Africa survive to beat Pakistan at Women’s Cricket World Cupon March 11, 2022 at 8:31 am

South Africa survive to beat Pakistan by six runs in another thrilling finish at the Women's Cricket World Cup.

Netflix – The Best Way to Relax

Netflix - The Best Way to RelaxIf you're in the mood for a relaxing, relaxing movie while on vacation, you need to check...

Children as young as nine exposed to pornographyon January 31, 2023 at 12:48 am

The consumption of pornography is widespread among children, the children's commissioner says.Image source, Getty ImagesBy Shiona McCallumTechnology reporterChildren are being exposed to online pornography...

University staff strike over pay and pensionson December 1, 2021 at 1:17 am

Students have been urged to check with their lecturers to see if their classes are running.Image source, Getty ImagesStaff at 58 universities are taking...

WeWork: Shares slide as it raises ‘substantial doubt’ over futureon August 9, 2023 at 2:12 am

Shares of the once globally hyped company fall by close to 24% in extended trading in New York.Shares of the once globally hyped company...