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Chancellor Rachel Reeves is reportedly mulling plans to impose higher taxes on Amazon as part of a shake up that aims to level the playing field between online giants and in-store retailers. According to The Telegraph, the chancellor is believed to be reviewing the business rates paid by companies like Amazon, and could scrutinise how much tax Amazon’s warehouses pay compared to high street stores.
It comes as the chancellor is set to announce a series of tax rises and spending cuts in the upcoming autumn budget, in an aim to plug what is reportedly a £22bn black hole in the UK’s public finances.
According to The Telegraph, industry sources have suggested that Reeves could launch a consultation on the proposed tax raid after her first budget later this month.
The Labour government previously announced plans to overhaul the business rates system in its manifesto, outlining its commitment to “level the playing field between the high street and online giants”.
Its manifesto says: “The current business rates system disincentivises investment, creates uncertainty and places an undue burden on our high streets. In England, Labour will replace the business rates system, so we can raise the same revenue but in a fairer way.
“This new system will level the playing field between the high street and online giants, better incentivise investment, tackle empty properties and support entrepreneurship.”
A spokesman for the Treasury told The Telegraph: “We do not comment on speculation around tax changes outside of fiscal events.”
The Treasury has been contacted for further comment.
