The retail and hospitality industries face a “punishing” tax burden, which is higher than any other sector, according to new analysis from the British Retail Consortium (BRC) and UK Hospitality (UKH).
Hospitality businesses pay 82p in taxes for every pound and retail pays 72p, in contrast to the 40p paid by banks. These figures were highlighted by Allen Simpson, chief executive of UKH, who stated that the Chancellor must address the “shocking” rate at which high street firms are taxed in the upcoming Budget.
The BRC and UKH, which represent major UK businesses, are calling on John Healey to reduce high street taxes. They report that retail and hospitality paid a combined £62bn in taxes in the recent financial year. The majority of this tax burden is made up of VAT, along with employer national insurance contributions (NICs) and business rates.
A government spokesperson said that over 750,000 retail, hospitality and leisure properties already benefit from lower business rates multipliers. They also noted that the Chancellor cut business rates by 20% for pubs, social clubs, and live music venues in his first week.