Calls to end tax imbalance between wealthy web giants and battered British high streets

Campaigners are calling on Chancellor Rishi Sunak to end the tax ­imbalance between wealthy web giants and the ­battered British high streets.

So far this year, retailers reeling from coronavirus have announced a wave of store closures and at least 60,000 job losses as they struggle to compete with their online rivals.

Mr Sunak has already granted a year-long rates holiday to retail, leisure and hospitality firms.

But campaigners say Government plans for a two per cent levy on online sales will raise just £350million – a “drop in the ocean” compared with the multi-billion pound profits of web giants who legally minimise their tax returns.

Experts estimate that five of the biggest firms made UK profits of £8.1billion in 2018 but paid only £237million in taxes.

Retailers have already been granted a year-long rates holiday (PA)

Paul Monaghan of campaign group Fair Tax Mark said: “We need to act to redress the unfair playing field that many of our businesses face from competitors who aren’t making a fair contribution.

“This helps both the national coffers and the local high street alike.”

In 2018, Amazon paid just £63million in business rates on reported sales of £10.9billion in Britain. In contrast, Marks & Spencer pays about £184million in rates on annual sales of £10.7billion, while Tesco pays £700million on sales of £63.9billion.

A spokesperson for Amazon said the online giant had invested more than £18bn in creating jobs and infrastructure in the UK over the last decade, and plans to create a further 2,00 jobs here.

Big tech firms legally minimise their tax returns and avoid paying millions (PA)

At least 40 high street retailers have collapsed this year, the Centre for Retail Research said. Many had already been struggling

with high rents and rates before the lockdown.

Shop workers’ union Usdaw has called for better public transport and cuts in parking charges and taxes to boost town centres.

It also criticised Mr Sunak for excluding retail in his mini budget, which saw VAT cuts for hospitality companies. General secretary Paddy Lillis said: “Bricks and mortar retailers are more than paying their fair share.”

Bridget Phillipson, Labour ’s Shadow Chief Secretary to the Treasury said the union was “right to push for a better deal for our high streets”.