Save high street by taxing online sales at higher rate, Burnham urged

Andy Haldane, president of the British Chambers of Commerce and a former adviser to Andy Burnham, has urged the government to tax online sales more heavily than shop sales. He says the tax system favours large digital businesses over smaller physical retailers, worsening pressure on high streets, and has called for the change alongside a review of business rates and greater devolution.

The government is expected to announce high-street measures in next week’s budget, including requiring online marketplaces such as Amazon and eBay to collect VAT from large sellers, potentially raising up to £1bn. Ministers may also raise the rent threshold at which small businesses pay business rates. Retailers have sought an online sales tax to fund lower shop rates, while hospitality leaders warn that taxes on major US technology firms could prompt retaliation.