Healey reportedly rules out warehouse tax after retail pressure

Summarised from 2 outlets · 3 reports · Updated 11 Oct, 10:37 · Archive

The Chancellor has reportedly ruled out a warehouse tax, after retail bosses warned it would harm high streets.

Chancellor John Healey has reportedly ruled out a warehouse tax ahead of his first Budget, following mounting pressure from retail and hospitality bosses who warned such a move would damage the high street.

Marks & Spencer chief executive Stuart Machin led the charge, calling Labour's last two budgets 'disasters' and a 'crushing disappointment' that piled £75 billion of extra taxes on firms and families. He urged Healey to 'restore hope' by reversing those mistakes and taking 'the handcuffs off business'. John Lewis and Waitrose chairman Jason Tarry echoed these concerns, warning that a warehouse tax would 'pile more costs' on to large stores and expose 'a fundamental misunderstanding of how modern high streets work'.

Retailers are particularly concerned that Prime Minister Andy Burnham's promise to cut business rates for pubs, clubs and music venues could be funded by hitting larger supermarkets. Machin said: 'You're paying for a cheaper pint by loading costs on to the weekly shop.' Tarry warned a warehouse tax would trigger 'a wave of catastrophic closures' that would 'only harm our high streets'.

Healy is scheduled to host a delegation of retail and hospitality leaders at Downing Street on Tuesday, ahead of unveiling his Budget in 17 days.

How it is being reported

• Retail bosses ramp up pressure on Healey to cut ‘ridiculous’ tax burdenThe bosses of Marks & Spencer and John Lewis have piled further pressure on the government to slash the “ridiculous” tax burden facing high street firms. Stuart Machin, chief executive of M&S, called on Chancellor John Healey to “restore hope” within the retail industry by turning a corner from Labour’s last two budgets, which he [...]City AM · 11 Oct, 10:28
• Retail bosses prepare for No11 summit as Chancellor is urged not to clobber businesses with more tax hikes in BudgetJohn Healey has come under mounting pressure not to clobber businesses with more tax hikes and business costs that have pushed up prices, as he prepares to unveil his first Budget in 17 days' time.Daily Mail · 11 Oct, 00:14
• Chancellor John Healey 'rules out' warehouse tax in Budget after M&S boss's call for growthRetail bosses fear John Healey will levy increased taxes on warehouse space in a bid to raise much needed funds to fulfil Labour's pledges elsewhere.Daily Mail · 10 Oct, 14:55

In this story: John Healey · Stuart Machin · Jason Tarry · Andy Burnham · Marks & Spencer · John Lewis

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