British Retailers Write to FM to Stop Future Hikes in Business Rates

Over 50 British retailers have written to the government requesting it to freeze business rates and to stop future tax rates as the retail..

Arslan Butt•Tuesday, August 13, 2019•1 min read

Over 50 British retailers have written to the government requesting it to freeze business rates and to stop future tax rates as the retail sector continues to suffer over rising Brexit uncertainties. In the letter addressed to Finance Minister Sajid Javid, retailers asked to freeze the multiplier from hiking rates any further.

Business rates are a form of tax imposed by the government on most commercial establishments in order to raise funds to pay for local services. These business rates are calculated based on the rental value of the properties from where businesses operate and are increased by a factor every year.

The British Retail Consortium, a lobby of retailers in Britain, coordinated the letter sent to the finance minister. According to the BRC’s letter, the retail sector contributes to 5% of UK’s economy but is responsible for 25% of business rates and 10% of all business taxes.

The retail sector in Britain has been suffering ever since the Brexit referendum of 2016. A recent report by the BRC reveals that the 12-month average total sales declined to a mere 0.5% in the month of July.

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Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.