Hitting web firms like Amazon with an online sales tax would help revive Britain’s high streets in the aftermath of the coronavirus pandemic, MPs say today (Friday).
The Commons Levelling-Up Select Committee backs plans for a levy which would make buying over the internet more expensive - and could tempt shoppers back to town and city centres.
The Government will launch a consultation on its plan for an online sales tax - a move backed in the committee’s 81-page report, ‘Supporting our high streets after Covid-19’, published on Friday.
When non-essential retail was locked down during the crisis, shoppers switched to the internet instead - fuelling a long-term rise in online shopping.
The study says that “a mechanism” is required “in particular to level the playing field between bricks-and-mortar and online retail”.
It adds: “We support the principle of an online sales tax and welcome the consultation.
“We particularly welcome that revenue from an online sales tax would be used to reduce business rates for retailers.
"The Government should provide clear timescales for the consultation.”
But it warns that a levy should not clobber businesses which have both physical and online shops.
“Since the future of retail is multichannel due to changing consumer habits, it is particularly important that an online sales tax does not penalise retailers that have both an online and bricks-and-mortar presence,” it says.
The committee calls on ministers to launch an immediate “lessons learned review on the impact on high streets of central and local government handling of the Covid-19 pandemic”.
Chairman Clive Betts said: “The Covid-19 pandemic dramatically changed our high streets almost overnight, with the pandemic accelerating existing consumer trends and introducing new ones.
“To help build the resilient, thriving high streets of the future, it’s vital that Government facilitates a long-term, holistic approach both to the planning and to the regeneration funding of our town centres.
"The Government should look at how it can support strategies which bring together local councils, business partners, and the local community in developing high streets which capitalise on local heritage and experiences and which combine a mix of uses, including retail, hospitality, green-spaces, and arts and culture.
“An immediate ‘lessons learned’ review is necessary to examine the impact of the handling of the pandemic on the high street.
"But the pandemic is not over, and it is important the Government is alert to the continuing effects on our town centres and monitors the impact of the full range of Covid-19 business support that affects the high street and is prepared to adjust this if necessary.”
The Mirror has long championed town centres with our High Street Fightback campaign.
A Government spokeswoman said: "Our multi billion-pound investment programme will transform towns and high streets into vibrant places as part of our efforts to level up all parts of the country.
"The £830 million Future High Streets Fund is helping 72 places across England to build back better, and the £3.6billion Towns Fund will upgrade high streets and local transport."
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