We met a senior official from the HMT Business Tax department to press them on retailers’ priorities for the forthcoming Budget, later in October.
We briefed them on the impact of recent tax rises on retail, including the fact that the industry had seen a 20% increase in its tax bill in the course of the last two years. We set out our priorities, focusing in particular on property, employment and related measures.
In the course of the discussion that followed HMT officials noted the following:
- The Flint Global data had been extremely helpful in building HMT understanding of industry impact and aligned concerns.
- The Budget is taking place against the backdrop of a very difficult fiscal position.
- They had heard very clearly the industry’s concerns about any additional cost burdens being imposed on them following significant impacts from recent budgets.
- It is not expected that the ‘core structural elements’ of Business Rates will change at this time.
- HM Treasury has heard the concerns expressed about the viability, complexity and impact of any additional supplements on warehouses.
- The Fiscal Devolution Roadmap, which will be published alongside the Budget, will focus more on the assignment of revenues raised from central taxes than on local revenue raising powers.
