Labour proposes new property tax - London Wallet

Labour has pledged to replace business rates with a system of “business property taxation” in a bid to level the playing field between high street businesses and online retailers.

The party has revealed a new five-point plan designed to “breathe new life” into the UK’s high streets, which includes tougher laws on shoplifting.

Labour deputy leader Angela Rayner, shadow Chancellor Rachel Reeves and shadow home secretary Yvette Cooper will visit Tees Valley today to unveil their party’s plan to “reverse the Tories’ 14 years of decline” on Britain’s high streets.

It hopes that its planned measures will “rejuvenate” high street shopping and tackle anti-social behaviour and shoplifting.

Rayner said: “Our town and city centres are an untapped strength of Britain’s economy. Tory chaos has cost the country dearly, and every region has paid the price.”

Reeves commented: “Labour will breathe new life into our high streets. We’ll create the conditions to get retailers thriving again by replacing business rates, opening hundreds of banking hubs across the country and stamping out late payments to get them paid on time.”

Emma McClarkin, chief executive of the British Beer and Pub Association (BBPA), remarked: “The existing unfair system of business rates penalises our community pubs to the tune of £500m a year and a long-term solution to this problem is badly needed.”

Dee Corsi, chief executive of the New West End Company, stated: “The news Labour has committed to much-needed reform of the unwieldy business rates systems will be welcomed by businesses across the country, including larger high street retailers in the West End who continue to be squeezed by an outsized tax burden and challenging trading environment.”

Charles Begley, chief executive of the London Property Alliance, added: “The long-term reform of business rates is hugely welcome.

“This unsustainable and complex tax disproportionately impacts bricks-and-mortar retailers which are vital for the health and wealth of our high streets – and creates an unlevel playing field with online businesses.”

Treasury minister Bim Afolami unsurprisingly opposed the proposals.

He said: “That will mean just like every Labour government before, higher taxes on working families and back to square one.

“The Labour-led Welsh Government is hiking up business rates: it has the highest business rates in Britain, and from April 2024 it slashed business rate relief for the hospitality sector.

“Only Rishi Sunak and the Conservatives have a plan which is working: cutting the taxes of hardworking families, supporting small businesses with the biggest ever tax cut and halving inflation. We should stick to that plan and not go back to square one with Labour.”