How a new online tax could boost British high streets

• The Institute for Public Policy Research has urged Chancellor John Healey to introduce a 2 per cent tax on online purchases and a 1 per cent tax on click-and-collect services.
• The think tank aims to shift the tax burden from traditional high street stores to online retailers ahead of the financial statement on 28 October.
• The proposed measures could raise an estimated £1.5 billion to fund reductions in business rates for physical retail, hospitality, and leisure outlets.
• To protect smaller retailers, the IPPR suggested exempting a business's initial £500,000 in annual remote sales from the new tax.
• The proposals could leave small high street businesses £1,400 better off annually while fully compensating local authorities for lost business rate revenue.

IN FULL