According to Sainsbury's CEO Simon Roberts, more than 17,000 stores could close in the country in the next ten years. The businessman is calling for a significant reduction in so-called business rates (these are charged to companies in the case of most non-residential properties, e.g. shops, warehouses, restaurants).
Will taxes "put down" business on the Islands?
In an article published in The Times, retail bosses have warned that tens of thousands of retail jobs could be lost due to a sharp rise in business rates.
They said: “The No. 1 barrier to growth in our industry is our outdated business rates system.”
"Successive governments have promised reforms but have always delivered only minor changes. The result? Shops closing, jobs lost, economic growth stalled."
Trade wants tax reform
Research by Development Economics, seen by The Times, has shown that a 20% fall in key business rates would save retail firms £1 billion in the first year, while saving more than 17,000 jobs.
Development Economics said a base rate cut of this scale would initially reduce revenues for the Exchequer, but over a decade the corresponding increase in economic activity would deliver a positive net return to the Government of £70 million a year.
Retail bosses said: "A government that boosts economic growth, creates jobs and provides long-term funding for public services will be able to look back on its achievements with pride."
“Business rates reform won’t be the answer to achieving all of this, but it would be a very good starting point.”
