Ahead of the budget, there is growing pressure on the UK government to make retail tax changes and provide increased support for women in business. Conservative Members of Parliament (MPs) in the North of England are leading the charge, urging Chancellor Rishi Sunak to reduce taxes for retailers. The Northern Research Group, made up of 45 Conservative backbenchers, has written a letter to Sunak calling for a “levelling of the playing field” between physical and online retailers. They propose a reduction in business rates from 50% of market rent to 35% to support this effort.
The MPs argue that this move is crucial due to the impact of the Covid-19 pandemic on town centers, and they emphasize the need for high streets to thrive once again when people can resume shopping. This call for retail tax changes is accompanied by a separate appeal from prominent figures in business and government, who are pushing for additional protections for women in the retail and beauty industries. Over 60 female business leaders and MPs have signed a letter published in the Daily Telegraph, highlighting the often overlooked financial impact of the lockdown on women and calling for more support in the upcoming budget.
The letter is signed by influential figures such as Jane Shepherdson, chair of My Wardrobe HQ, Millie Kendall and Helena Grzesk, CEO and COO respectively of the British Beauty Council, Trinny Woodall, founder and CEO of Trinny London, and retail consultant Mary Portas. These leaders argue that the pandemic has set back progress for working women in the UK and urge the government to assess the impact and take appropriate action. Specifically, they call for a temporary reduction in VAT for hair and beauty salons from 20% to 5%, aligning with the relief offered to the hospitality sector. They also request an extension of the business rates holiday until the end of the pandemic, followed by a decrease to 50%.
The letter emphasizes that these measures would demonstrate the government’s commitment to supporting women in business and recognize the vital role of the female workforce in the UK’s recovery plan. These calls for retail tax changes and support for women come at a challenging time for Chancellor Sunak, as he faces the task of finding £43 billion to address the economic fallout of the pandemic and facilitate the country’s recovery. The budget is expected to include significant spending commitments, such as a £5 billion fund to provide grants to heavily impacted sectors like high street stores, restaurants, and personal service firms such as hairdressers.
Useful links related to the article:
– Government website on support for the beauty industry
– UK retail trade statistics on the government website
