We need to cut business rates and introduce an online levy to save the high street

It’s difficult to know where Marks and Spencer are coming from when they oppose an online sales tax; the chancellor should instead listen to the alliance of major players who want to see one introduced, writes Chris Blackhurst

M&S finance boss Eoin Tonge has written to Rishi Sunak to dissuade him from introducing an online sales tax (PA Wire)

After three months, the chancellor, Rishi Sunak, has closed his review of changes to business rates. Judging by the declared positions of some of our leading retailers, the outcome is far from clear.

Two weeks ago, a “retail jobs alliance” of major players, including Sainsbury’s, Tesco, Co-op and Morrisons, called for an overall cut in business rates for all premises and said they were “open to the possibility” this could be funded through an online sales tax.

This heavyweight group – which also included Greggs, Waterstones, B&Q-owner Kingfisher, the Usdaw union and bodies representing independent retailers and convenience stores – maintained an online tax would help “level the playing field” between internet retailers and bricks-and-mortar stores. This at a time when Covid-19 and lockdowns have further driven shoppers online.