Reform of tax system could help retailers survive, says Yorkshire businessman

The entrepreneur Andrew Mear, whose company San Pedro has a £7 million portfolio of retail, residential and commercial properties across West Yorkshire, believes reform of the tax system could provide a boost for retailers who are struggling to cope with the pandemic and the growth of online shopping.

Mr Mear, who is also the chairman of Skipton BID (Business Improvement District), said: "There are still some fundamentals which need addressing if we are to make headway – not least a rates system which is no longer fit for purpose. The time has come for a more direct system of taxation to replace business rates.

"For example, shoppers buying items in more fashionable or affluent areas would pay a purchase tax based on the value of that area – reflecting a tax system similar to the US.

"There could be a tax rate from two to 15% in the physical retail zone. Equally, this idea could be applied to online shopping, by looking at the buyer’s postcode and adding the applicable tax at checkout. Changing the system would bring back a more level playing field, giving the traditional retailer a fighting chance."

However, Mr Mear also predicted that retail zones will contract, with major retailers focusing on large shopping centres.

He added: "It comes as no surprise that cities such as Leeds, Manchester and York are enjoying a surge in popularity while peripheral areas experience a slow degeneration.