policy

Tax Internet Sales More to Protect UK High Streets, Burnham Told

Summarized from Business | The Guardian

A former top adviser urges Andy Burnham to impose heavier taxes on online sales ahead of the government's first budget next week.

Tax Internet Sales More to Protect UK High Streets, Burnham Told

A senior former adviser to Andy Burnham is calling on the Greater Manchester mayor to push for steeper taxes on internet transactions compared with in-store purchases, arguing the move would help struggling high streets compete against e-commerce giants on fairer terms.

Andy Haldane, a prominent economist and former Burnham confidant, added his voice to a growing chorus demanding reform ahead of what will be the government's first budget. The British Chambers of Commerce president has separately urged an overhaul of business rates and greater devolved powers for local leaders as tools to slow the wave of shop closures sweeping the UK.

Read more Class Politics Fractures Trump's Billionaire-Blue Collar Alliance →

Proponents of the so-called online sales levy argue that brick-and-mortar retailers face disproportionately high property-linked costs through business rates, while digital competitors operate with comparatively low overheads. A targeted tax adjustment, advocates contend, could rebalance conditions without requiring a wholesale reinvention of the existing tax framework.

The debate over high-street survival has gained new urgency as town centers across Britain continue to lose retailers to both e-commerce competition and shifting consumer habits. Discussions around what revitalized communities look like — citing examples such as Middleton's reported turnaround — suggest local leadership and policy flexibility may be as critical as any single fiscal measure.

With Prime Minister Keir Starmer and Chancellor John Healey finalizing budget plans, pressure is mounting on the government to deliver concrete relief for physical retailers before more closures render the question moot. Continue reading at Business | The Guardian.

Frequently Asked Questions

Q.Who is urging Andy Burnham to tax online sales more heavily?

Andy Haldane, described as one of Burnham's most senior former advisers, is calling for heavier taxes on internet sales compared with in-store purchases to help struggling high streets.

Q.What changes to business rates are being proposed alongside an online sales tax?

The British Chambers of Commerce president has called for a broad overhaul of business rates and greater powers for local leaders to help stem shop closures across the UK.

Q.When is the UK government's budget that could address high-street tax reform?

The budget is scheduled for next week, with Prime Minister Keir Starmer and Chancellor John Healey making final preparations at the time of the report.

More in policy →