Business Rates
The question
To ask the Chancellor of the Exchequer, pursuant to the Answer of 25 July 2024 to Question 409 on Business Rates, what assessment she has made of the potential impact of business rates on the prices charged by online retailers.
Answered by James Murray
As set out in the manifesto, the government is committed to a fairer business rates system and to levelling the playing field between online giants and high streets.
Currently, the retail sector accounts for approximately 21% of total value of the business rates tax base, but only contributes 5% to Gross Value Added (GVA). As a result of the 2023 revaluation, business rates paid by the retail sector fell by an estimated 20%. Conversely, business rates increased by an estimated 27% for large distribution warehouses to reflect the growth in the online sales sector.
As with any tax policy, decisions will be made at fiscal events. The government keeps the tax system under review and is open to receiving evidence from stakeholders.
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