M&S is opposing the UK Chancellor's proposed property tax increases, fearing they will escalate store closures and harm the high street. The retailer stated that 111 branches will face higher bills, leading to potential closures. M&S argued that taxing larger retailers, which often anchor high streets, is detrimental to smaller stores, as their closure would negatively impact local economies. Proposed tax reforms could further contribute to the decline of traditional retail spaces. The UK government plans to introduce lower tax rates next year for retail and hospitality.
M&S warned that 111 of its branches would be hit with higher bills because of the changes and could be forced to close. They highlight the potential consequences for smaller stores if larger retailers are taxed heavily.
Given larger retailers are often anchor tenants on the high street, taxing them to support smaller stores is a false economy if larger shops close, smaller shops suffer.
The proposed reforms could therefore accelerate the decline of the high street by encouraging retailers to close larger high street stores.
To deliver our manifesto pledge and provide certainty and support to the high street we intend to introduce permanently lower tax rates for retail, hospitality, and leisure properties from next year.
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