The Treasury should increase corporation tax to fund a business rates cut for high street retailers, a new government-commissioned report has said.
The Retail Sector Council – co-chaired by Kelly Tolhurst, minister for small businesses, consumers and corporate responsibility – will recommend that corporation tax should rise 2% to help relieve bricks-and-mortar stores from business rates tax, according to Sky News.
The increase would raise roughly £6bn annually by 2022-23 and will be put forward as part of the council’s report to Whitehall in the coming weeks.
A source told Sky News the Retail Sector Council will make a dozen recommendations including VAT reform and transparency around property and tax costs.
Members of the Retail Sector Council, formed in 2018, include Amazon UK country manager Doug Gurr; Sir Charlie Mayfield, former chair of John Lewis Partnership; and Asos chief executive Nick Beighton.
Since 2010, data shows the business rate multiplier in England has jumped from 41.4p to 50.4p in the pound despite ongoing industry outrage.
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