North Yorkshire MP calls for the abolition of business rates
Malton MP Kevin Hollinrake has introduced a Ten Minute Rule Bill in the House of Commons which would bring an end to business rates and replace the revenue with a small increase in VAT.
The MP said this change would create a much-needed level playing field between online and high street retailers and could help save hundreds of thousands of businesses.
Mr Hollinrake estimates that an increase in VAT from 20p to 23p would fill the £30bn per annum gap created from business rates abolition.
He said: “In my view, the best option would be to completely scrap business rates and apply a small increase in the sales tax that already exists in the shape of VAT. This would immediately level the playing field, would not create any additional bureaucracy, and we would be able to completely dispense with the convoluted business rates system.”