FWD welcomes shift on business rates

FWD has welcomed PM’s business rates announcement, as the decision recognises the essential role wholesalers play in supporting communities

Four days into his premiership, Prime Minister Andy Burnham has announced that proposed business rates relief for pubs, social clubs and live music venues will be funded by reviewing reliefs for businesses that do not contribute positively to local communities and online marketplaces that do not pay their fair share of tax, rather than through higher rates for out-of-town warehouses.

The announcement marks a significant shift from earlier proposals that suggested increasing business rates for large warehouses to fund relief for the hospitality sector, a move FWD has consistently argued would have unfairly penalised food and drink wholesalers, despite the vital role they play in supporting communities and local economies.

James Bielby, Chief Executive, Food & Drink Wholesale UK, said:

“Pubs, clubs and live music venues are at the heart of their local communities, so it is right that the Government wants to recognise the positive contribution they make through lower business rates.

“The proposal to fund these through reviewing reliefs for businesses that do not contribute to local communities and online marketplaces that do not pay their fair share is welcome, and a change from previous comments about increasing taxes of out of town warehouses.

“FWD and members made strong representations that taxing food and drink wholesalers, which underpin every community in our country and are fundamental to generating growth in every postcode, was not the right approach, and it good that the PM has listened.

“Every day, our members supply community businsesses that keep high streets thriving, while also delivering food to schools, hospitals, care homes and other vital public services. They are an essential part of the infrastructure that supports communities across the UK.

“As the Government develops the next stage of business rates reform, they must ensure this principle is applied consistently, with businesses making a clear and positive contribution to local communities being recognised and supported. Food and drink wholesalers play an essential role in supporting communities, public services and local economies through resilient supply chains, and reform should strengthen, not undermine, the businesses that communities rely on every day.”