Kingfisher boss warns of danger that the tax base ‘is going to disappear’
A review of business rates is needed to relieve pressure on high street retailers, Kingfisher’s chief executive Ian Cheshire has told the government, as the chancellor prepares to deliver his Budget on 20 March.
The Guardian quoted Cheshire, who is also chairman of the British Retail Consortium, as saying that the government stands to lose out on one of its biggest sources of revenue by failing to reform the tax system to take account of online selling.
Cheshire met Danny Alexander, chief secretary to the Treasury, last week. He advises differential tax rates to stimulate business, the paper reported.
‘Online retailers are not facing the same tax take. For the Treasury, there is a danger that their tax base is going to disappear,’ he said.
Focus on small businesses
The chancellor must deliver a Budget that is ‘unashamedly focused on boosting small business’, according to John Walker, national chairman of the Federation of Small Businesses.
Small business rate relief should be made permanent in England, the FSB suggested, as ‘some small businesses pay more in business rates than they do in rent’.
The FSB called for an extension of the regional employer NICs holiday for new businesses to all small firms across the UK with fewer than four staff, rather than just start-up businesses. ‘This could create 45,000 new jobs and add £1.3bn to the economy,’ it said.
The government has considered the case for extending the NICs holiday to all existing micro-businesses, exchequer secretary David Gauke said in a Commons written answer in January. The government believed, however, that ‘the best use of public funds at this time is to keep the NICs holiday as a targeted scheme for those areas in most need of employment support’.
Francesca Lagerberg, head of tax at Grant Thornton, said the Budget would see ‘plenty of effort to promote growth with little room for manoeuvre’.
She added: ‘With economic recovery continuing to be slow, we can expect some small measures to help foster growth. The chancellor will need to be imaginative as there is little spare cash available.’
Kingfisher boss warns of danger that the tax base ‘is going to disappear’
A review of business rates is needed to relieve pressure on high street retailers, Kingfisher’s chief executive Ian Cheshire has told the government, as the chancellor prepares to deliver his Budget on 20 March.
The Guardian quoted Cheshire, who is also chairman of the British Retail Consortium, as saying that the government stands to lose out on one of its biggest sources of revenue by failing to reform the tax system to take account of online selling.
Cheshire met Danny Alexander, chief secretary to the Treasury, last week. He advises differential tax rates to stimulate business, the paper reported.
‘Online retailers are not facing the same tax take. For the Treasury, there is a danger that their tax base is going to disappear,’ he said.
Focus on small businesses
The chancellor must deliver a Budget that is ‘unashamedly focused on boosting small business’, according to John Walker, national chairman of the Federation of Small Businesses.
Small business rate relief should be made permanent in England, the FSB suggested, as ‘some small businesses pay more in business rates than they do in rent’.
The FSB called for an extension of the regional employer NICs holiday for new businesses to all small firms across the UK with fewer than four staff, rather than just start-up businesses. ‘This could create 45,000 new jobs and add £1.3bn to the economy,’ it said.
The government has considered the case for extending the NICs holiday to all existing micro-businesses, exchequer secretary David Gauke said in a Commons written answer in January. The government believed, however, that ‘the best use of public funds at this time is to keep the NICs holiday as a targeted scheme for those areas in most need of employment support’.
Francesca Lagerberg, head of tax at Grant Thornton, said the Budget would see ‘plenty of effort to promote growth with little room for manoeuvre’.
She added: ‘With economic recovery continuing to be slow, we can expect some small measures to help foster growth. The chancellor will need to be imaginative as there is little spare cash available.’
