Tory shadow Chancellor Mel Stride has unveiled a major new tax cut which he hopes will revitalise the beleaguered British high street. Speaking at the Conservative Party conference in Manchester, he revealed that his government would deliver a permanent 100% business rates relief for retail, hospitality and leisure businesses.
He claims that the policy would cost just £4 billion, but save thousands for over a quarter of a million hard-pressed businesses. Mr Stride says the relief would bring businesses back to the high street, and pass on the savings to consumers in the form of cheaper gym memberships, meals and pints. It would also help protect and create jobs in a sector that has lost 89,000 hospitality workers since Rachel Reeves’ budget, largely thanks to her National Insurance hike.
Mr Stride said: “Our high streets and town centres have been battered by Labour. The increases in the Jobs Tax and energy bills have hit them hard, and pubs and shops have seen their business rates bills more than double. We want to see high streets thriving again.
“Pubs are vital centres of community life, but they are closing on a huge scale. We will take decisive action to save small businesses and revive our high streets, lifting a quarter of a million shops and pubs out of business rates altogether.”
“Rachel Reeves claims to care, but her actions speak louder than words, and businesses have been left reeling as the Chancellor cut the rates relief put in place by the Conservatives, and plans to abolish it altogether next year.”
The Tories would boost businesses with their new ‘Cheap Power Plan’, which would deliver around £165 off the average household bill.
Shadow Energy Secretary Claire Coutinho has said the Tories would axe the Carbon Tax on electricity generation and scrap the Renewable Obligation subsidy scheme.
The Carbon Tax currently makes up around one third of wholesale electricity prices, which forces up costs for both households and businesses.
Families and businesses have now spent at least £67 billion subsidising renewables through the Renewable Obligation Subsidies since 2002 according to Ofgem.
It comes as the Tories announce a £47 billion package of cuts to restore the country’s finances.
£23 billion of this would be from cuts to the welfare bill, with an additional £8 billion from slashing civil servant numbers, and £7 billion from overseas aid.