UK Treasury rejects calls from retailers for business rates reform

The UK government is resisting pressure from retailers to reform business rates, saying that it has already made changes and that reforming international corporate taxation is a higher priority. Responding to parliament’s Treasury select committee, chancellor Philip Hammond said that a review of business rates in 2016 found “no consensus on an alternative base”. “Respondents agreed that property-based taxes were easy to collect, difficult to avoid, relatively stable compared to other taxes and had a clear link with local authority spending,” he said in a letter to Nicky Morgan, who chairs the committee. According to the Telegraph Hammond admitted that business rates are hitting the high street too hard, and said he would continue efforts to “find a better way of taxing the digital economy” in order to reduce the tax advantages for online retailers compared to high street stores. Click here for the full FT article (£) Click here for the full Telegraph article Click here for the full Independent article