Andy Haldane, president of the British Chambers of Commerce, has urged the UK government to tax online sales more heavily to help struggling high streets and smaller businesses compete with digital retailers.
Haldane called on Prime Minister Andy Burnham and Chancellor John Healey to reform the business rates system and rebalance tax incentives that he believes favour online sellers and large businesses over physical shops and smaller operators.
His appeal comes ahead of the government’s upcoming budget, which is expected to include measures aimed at easing financial pressure on high streets and supporting the regeneration of town centres.
Haldane argued that high business rates have placed an unfair burden on smaller retailers at a time when operating costs are rising and consumer demand is weakening. He said reforming the system would be essential to strengthening local economies and supporting growth beyond major cities.
The government is also considering a tougher tax approach to online marketplaces, including Amazon and eBay, which could generate up to £1 billion in additional revenue by requiring them to collect value-added tax from more UK-based and overseas sellers.
Retailers and hospitality businesses have repeatedly called for changes to business taxation, arguing that existing costs threaten jobs and the survival of physical stores.
Haldane also advocated greater financial and decision-making powers for elected mayors, including the possibility of allowing local leaders to set certain tax rates.
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The government has already announced business rate reductions for pubs, clubs and live music venues, alongside funding initiatives to regenerate town centres.
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