UK Labor reportedly target online businesses to help high street retailers By Reuters
Â© Reuters. FILE PHOTO: Labor politician Rachel Reeves speaks during a press conference on the People’s Vote at the National Institute for Economic and Social Research in London, Britain May 9, 2019. REUTERS / Henry Nicholls / File Photo
BRIGHTON, England (Reuters) – Britain’s opposition Labor Party would impose higher taxes on online retailers to fund tax breaks for brick-and-mortar companies, future party Finance Minister Rachel Reeves will say on Monday , an advance copy of his speech shows.
Britain is not expected to go to the polls until 2024 at the latest, but the opposition Labor Party is using its annual conference to present plans that it hopes will win back traditional voters lost to the Conservatives of Prime Minister Boris Johnson.
The COVID-19 pandemic has seen the center-right government spend hundreds of billions of pounds to support the economy, racking up debts that can take generations to pay off.
But polls show the crisis has made higher public spending more palatable to voters, giving the left-wing Labor Party a political opportunity to present itself as financially responsible without having to resort to spending cuts.
Reeves’ opening speech at the party’s conference in Brighton, southern England, will contain proposals to freeze property taxes paid by traditional businesses, funded by a temporary increase in a service tax digital for online giants.
If in power, Labor has said the digital services tax is expected to rise to 12% from 2% in 2022/23 before being replaced by a global system of minimum taxes, which has already been agreed upon. at an international level.
The government has repeatedly presented its own plans to reform corporate rates, which are calculated based on property values ââand seen as unfairly targeting retail and hospitality businesses with high-value real estate.
Labor has said it will go further by eventually abolishing the system and replacing it with a fairer regime.
Reeves also introduced a new set of budget rules and said the wealthy – including owners and shareholders – should bear more of the burden of paying for government spending.
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