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Bricks and mortar call for actionBritain?s bookshops have already thrown their weight behind a proposed Amazon tax. Meryl Halls, managing director at the Booksellers Association, urged the chancellor to act swiftly on the ?crucial matter? and help protect high street retailers.
Net loss of high street stores by sector in the last year? Pubs: -717 units
? Banks: -711 units
? Travel agents: – 679 units
? Post offices: -577 units
? Newsagents: -364 units
Ecommerce resistanceHowever, Hammond?s proposal to lessen the advantage of ecommerce firms was met with resistance from the online community. A study from delivery comparison site ParcelHero suggested that a new digital sales tax on ecommerce businesses could damage the ?one remaining successful retail sector?. The study claimed many multi-platform ?bricks and clicks? stores could end up paying excessive business rates as well as a new Amazon tax. Commenting on the research, David Jinks, head of consumer research at ParcelHero, said the high street?s concerns were ?far from being a one-way street?. ?Online limited companies already pay corporation tax at 19% and VAT at 20%, and may also be paying their own business rates on warehousing and offices.?And there are costs ecommerce businesses face that established high street stores don?t ? online retailers generally have significantly larger technology investment and delivery and returns charges, for example. “The most successful retail businesses today have a mix of physical stores and ecommerce sales. Multiplatform sales are the key to a successful modern retail business. It seems likely a new digital sales tax would apply to online sales for businesses with high street stores, as well as pureplay online retailers. In which case large stores weathering the business rates storm could be hit by even more taxes.” Jinks added that a new tax could introduce an unfair advantage for overseas ecommerce giants over UK-based web stores. __________________________________________________________________________________
Inside Britain?s local currencies Business Advice ventured to Liverpool, Brixton, Hackney and Bristol to find out how local currency schemes have been reinforcing local supply chains. __________________________________________________________________________________
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