Business groups in London are appealing to the prospective UK prime ministers, Liz Truss and Rishi Sunak, to implement policies that would benefit the West End of London. In an open letter signed by several prominent London business leaders, they are calling for changes that would foster growth in the capital and invest in communities to ensure a thriving economy for individuals and businesses.
One of the main concerns raised in the letter is the necessity for a comprehensive overhaul of business rates. The business leaders argue that business rates lack a connection to profit and act as a regressive form of taxation, stifling growth and discouraging investment. They stress that these rates become particularly problematic during times of escalating cost-of-living crises and are advocating for measures to assist struggling businesses.
Furthermore, the letter advocates for the reinstatement of tax-free shopping for international tourists. The business leaders contend that reintroducing this policy would provide a significant competitive advantage and generate more local employment opportunities. They highlight the fact that non-EU visitors spent £17.8 billion in the UK in 2019, with £3 billion dedicated to tax-free shopping. Presently, Britain is the sole European country that does not offer tax-free shopping to non-EU visitors, placing it at a disadvantage compared to countries such as France and Italy.
The letter also stresses the importance of addressing late payments, as reliable cash flow is crucial for businesses to navigate financial pressures. The business leaders implore the prospective prime ministers to take action on late payments, even prior to any legislative changes, in order to prompt firms to take necessary measures.
Overall, the business groups are urging the new prime minister to prioritize policies that bolster the West End and benefit businesses and communities in the area. They firmly believe that reforming business rates, reviving tax-free shopping for international tourists, and addressing late payments are critical steps towards promoting growth and ensuring economic well-being for all. The signatories of the letter include influential figures such as the CEO of New West End Company, CEO of Heart of London Business Alliance, and the Leader of Westminster City Council. Their collective voice adds weight to the demands put forth in the letter, emphasizing the urgency of the situation and the need for swift action.
Useful Links:
1. For more information on tax-free shopping in the UK, visit Gov.uk’s tax-free shopping page.
2. To learn about business rates in the UK, visit Gov.uk’s guide to business rates.
