Help high streets thrive by sorting out business rates

North Shropshire MP Helen Morgan has urged the Government to overhaul the business rates system to help local high streets thrive again.

Helen, the Liberal Democrat Levelling Up spokesperson, called for a “root and branch review” of how business rates work to help local shops compete with online giants.

The Liberal Democrats want to reduce the burden on small businesses while forcing online retailers to pay their fair share of tax.

Speaking during a Levelling Up debate in the House of Commons, Helen Morgan said:

“High streets and market towns in constituencies such as mine are really struggling. Local residents are shopping less because of the cost-of-living crisis and businesses cannot compete with online retailers because of business rates, so I am surprised that the Government are not supporting new clause 46.

“After all, one of their 2019 manifesto commitments was to review business rates in order to come up with a better model that can allow our high streets to thrive and help to level up regions where market towns are struggling.”

Helen later told Minister Dehenna Davison:

“They [the Government] are tinkering around the edges of the existing system. We are asking for root and branch review of how business rates are levied.”

Business rates are harmful for the economy because they directly tax capital investment in structures and equipment rather than taxing profits or the fixed stock of land.

Liberal Democrats would abolish the broken business rates system and replace it with a Commercial Landowner Levy – taxing only the land value of commercial sites, not productive investment. Removing buildings, utilities and other physical capital from taxation would boost business investment, in turn increasing productivity and wages.