PHILIP Hammond’s £900 million tax cut for struggling high street firms has failed to help thousands of stores – because of EU rules.
His flagship Budget policy promised all retail stores with a rateable value below £51,000 would see their business rates cut by a third – and said the move would help save traditional high street firms under threat from online giants.
PA:Press Association
But Boots said just 22 of its 2,400 stores – 1 per cent – have benefited from the policy.
This is due to the EU’s strict rules to restrict State Aid to £175,000 per business over a three-year period.
The £900 million fiscal package is over two years for the 2019/20 and 2020/21 financial years.
Boots boss Seb James said the policy exposed how large retailers get “little to no relief” despite a growing battle against online rivals like Amazon.
He added his voice to the growing chorus of businesses calling for a new online tax to level the playing field, saying: “The policy framework needs to be updated so that purely online retailers make a fair contribution in tax.”
Analysis by the real estate adviser Altus Group found one in three of all shops operated by large chains are eligible for Mr Hammond’s business rates tax cut.
But most large chains reached the EU State Aid limit too soon for the tax cut to have any real impact.
Getty – Contributor
