The tax system is \u201cstacked\u201d against high street firms, Labour has warned as it sets out plans to scrap business rates and shift the burden to online giants like Amazon.<\/p>\n
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At the Labour Party's conference in Brighton, Shadow chancellor Rachel Reeves is set to announce she would freeze business rates next year if she was in No 11, while also offering a cut for small firms, paid for by hiking digital taxes.\u00a0She committed the next Labour government to abolishing business rates, using the proceeds of a global deal on taxing multinational firms<\/strong>.<\/p>\n \u201cOur high street businesses do so much to enrich our lives and our communities, facing huge adversity in the past year. They are struggling right now, with a cliff edge in rates relief coming up in March.\u00a0The next Labour government will scrap business rates.\u00a0We will carry out the biggest overhaul of business taxation in a generation, so our businesses can lead the pack, not watch opportunities go elsewhere,\" she will outline in her speech.<\/p>\n Reeves will tell Labour\u2019s conference that the current business rates system punishes investment, entrepreneurship and the high street.<\/strong><\/p>\n The freeze in business rates in 2022\/23, and an increase in the threshold for small business relief from \u00a315,000 to \u00a325,000, would be funded by increasing the digital services tax from 2% to 12%.<\/strong><\/p>\n However Reeves also said Labour would be examining tax loopholes for business.\u00a0\u201cSome [loopholes] are important but too many simply provide loopholes for those who can afford the best advice.\u00a0For businesses they create extra layers of complexity to navigate, and added together they cost more than our entire NHS budget.<\/p>\n \u201cWe will look at every single tax break. If it doesn\u2019t deliver for the taxpayer or for the economy then we will scrap it<\/strong>.\u201d<\/p>\n Business groups welcomed Labour\u2019s proposals.\u00a0Mike Cherry, national chairman of the Federation of Small Businesses, said: \u201cThe shadow chancellor is right to propose concrete reform of a business rates tax which disproportionately burdens the small businesses and sole traders at the heart of local communities.\u201d<\/p>\n \u201cBusiness rates is a regressive tax which hits firms before they\u2019ve made a pound in turnover, let alone profit, whilst disincentivising sustainable investment.<\/p>\n \u201cThis proposal marks a welcome call to action that would take more small businesses out of the regressive rates system<\/strong> and rightly looks ahead to more fundamental reform.\u201d<\/p>\n Tony Danker, CBI director-general, added: \u201cChange to this outdated system is chronically overdue.\u00a0The Labour Party should be applauded for grasping the nettle and putting forward a pro-growth, pro-investment package of reforms<\/strong> that will reflect our green ambitions, spur the economic recovery, and help level up our regions.\u201d<\/p>\n Conservative Party co-chairman Oliver Dowden dismissed Labour\u2019s plans for the economy.\u00a0\u201cSuccessive Labour leaders have threatened businesses with tax hikes, higher bills and more red tape,\u201d he said.\u00a0\u201cOnly the Conservatives can be trusted to support our businesses and help our economy thrive as we build back better.\u201d<\/p>\n Image: PA<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" […]<\/p>\n","protected":false},"author":11,"featured_media":180402,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[10585,6,20823,10494],"tags":[14598,20284,15437,20166],"acf":[],"yoast_head":"\n